European Stocks Modestly Higher On Optimism About Strong Economic Rebound

European stocks are modestly higher on Friday as investors continue to bet on optimism about strong global economic recovery.

Data showing a bigger than expected addition of jobs in the U.S. in the month of June is aiding sentiment.

Markets are also weighing in developments on the delta variant spread and measures initiated in the European region to tighten curbs, delay relaxations and hasten vaccinations amidst comments from World Health Organization’s Europe Chief that the decline in European Covid cases had come to an end.

The pan European Stoxx 600 is climbing up nearly 0.4%. The U.K.’s FTSE 100 is up 0.23%, Germany’s DAX is rising 0.56% and France’s CAC 40 is up 0.14%, while Switzerland’s SMI is flat, having given up early gains.

In the UK market, Informa is gaining 3.2%. Anglo American Plc, Rolls-Royce Holdings, Entain, Evraz, Land Securities, Aveva Group, British Land, Taylor Wimpey, United Utilities, Smith (DS), Hikma Pharmaceuticals, Severn Trent and Royal Mail are up 1.2 to 2.5%.

In the German market, Deliver Hero is up more than 4%. Infineon Technologies, rebounding from recent losses, is gaining about 1.3%. Thyssenkrupp, Deutsche Post, Beiersdorf, Vonovia, Adidas, BASF and Continental are also up with notable gains.

Fresenius Medical Care shares are down by about 1.25%. HeidelbergCement, Bayer and Deutsche Bank are also weak, albeit with less pronounced losses.

In France, STMicroElectronics, Sodexo, Airbus Gruop, Atos, Michelin and Veolia are gaining 1.3 to 2.5%. Bank stocks Societe Generale and BNP Paribas are modestly lower.

In eurozone economic news, producer prices in Eurozone increased at a faster pace in May driven by a surge in energy cost, data from Eurostat showed.

The report said industrial producer prices were up 9.6% year-on-year, following a 7.6% rise in April. Economists had forecast an annual increase of 9.5%. On a monthly basis, producer prices climbed 1.3%, faster than April’s 0.9% rise and economists’ forecast of 1.2%.

Producer prices in the EU27 increased 1.4% on month in May, taking the annual growth to 9.6%.

Spain’s unemployment logged its biggest fall on record in June, data from labor ministry showed. The number of registered unemployment decreased by 166,911 in June after falling 129,378 in May. This was the fourth consecutive decrease.

The U.S. Labor Department’s report showed a continued reacceleration in the pace of U.S. job growth in the month of June. The report showed non-farm payroll employment spiked by 850,000 jobs in June after surging by an upwardly revised 583,000 jobs in May.

Economists had expected employment to jump by about 700,000 jobs compared to the addition of 559,000 jobs originally reported for the previous month.

Meanwhile, the Labor Department said the unemployment rate unexpectedly inched up to 5.9% in June from 5.8% in May. The unemployment rate was expected to edge down to 5.7%.