European shares rise on upbeat global mood, cyclicals jump

July 2, 2020: European shares climbed on Thursday, as encouraging economic data from across the globe and hopes of a COVID-19 vaccine lifted sentiment ahead of the crucial U.S. jobs data.

The pan-European STOXX 600 rose 0.9% by 0716 GMT, in its fourth consecutive day of gains. Banks, automakers and travel & leisure were the top gainers, rising between 1.5% and 2%.

Financial markets entered the second half of the year on a positive note this week, as business surveys showed a coronavirus-induced slump in global manufacturing eased in June, while a COVID-19 vaccine was found to be well-tolerated in early stage human trials.

The U.S. payrolls data, due at 1230 GMT, is likely to show the economy created jobs at a record clip in June, although surging virus cases threaten to derail the recovery.

Among individual movers, Associated British Foods jumped 7.1% as it said that trading in its Primark fashion stores that reopened after lockdown has been “reassuring and encouraging”.

German fashion house Hugo Boss rose 1.4% after it appointed Tommy Hilfiger executive Oliver Timm as its chief sales officer.

Scandal-hit Wirecard slumped 25% after police and public prosecutors raided its headquarters in Munich and four properties in Germany and Austria.

Reuters

Posted on: 2020-07-02T12:41:00+05:00

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