European Stocks Eye Best Week Since March
European stocks are on track for their best week since March, as investors await the release of U.S. jobs data. The Stoxx Europe 600 Index rose 0.4% on Friday, putting it on track for a 4.2% gain this week.
European Markets Rally
The rally in European markets has been driven by optimism that the region’s economic recovery is gaining momentum. The European Central Bank has also been supportive, with its latest stimulus package providing a boost to markets.
The Stoxx 600 is up more than 10% since the start of October, and is now trading at its highest level since February. The index is also up more than 20% since the start of the year.
U.S. Jobs Data in Focus
Investors are now turning their attention to the U.S. jobs report, which is due to be released later today. The report is expected to show that the U.S. economy added 600,000 jobs in October, which would be the strongest monthly gain since the start of the pandemic.
The report is also expected to show that the unemployment rate fell to 6.8%, down from 7.9% in September. The data will be closely watched by investors, as it could provide further evidence of the U.S. economic recovery.
European Sectors Perform Well
The Stoxx 600 is being supported by gains in a number of sectors. Banks are up 1.2%, while technology stocks are up 0.9%. Energy stocks are also performing well, with the sector up 0.7%.
The travel and leisure sector is also up, despite the ongoing restrictions in many European countries. The sector is up 0.6%, as investors bet that the restrictions will be eased in the coming months.
European Currencies Strengthen
European currencies are also strengthening, as investors bet that the region’s economic recovery is gaining momentum. The euro is up 0.3% against the dollar, while the pound is up 0.2%.
The euro is now trading at its highest level since February, while the pound is at its highest level since April. The strengthening of the currencies is a sign that investors are becoming more confident in the region’s economic outlook.
Outlook for European Markets
The outlook for European markets remains positive, as investors bet that the region’s economic recovery is gaining momentum. The release of the U.S. jobs data later today could provide further evidence of the recovery, and could provide a further boost to European markets.
The European Central Bank’s latest stimulus package has also provided a boost to markets, and the bank is expected to continue to provide support in the coming months. This should help to support the region’s economic recovery, and should provide further support to European markets.