UPDATE 2-European shares rise on strong results, upbeat U.S. jobs data

  • Reuters
  • Stock Market News
UPDATE 2-European shares rise on strong results, upbeat U.S. jobs data
Credit: © Reuters.

* STOXX 600 up from Thursday's drop, down on the week

* Adidas at record high after results

* Basic resources rise on copper's bounce

(Updates after the close)

By Susan Mathew

May 3 (Reuters) - European shares rose on Friday, recovering from their worst day in six weeks with support from robust jobs data from the United States and strong results from Adidas and HSBC.

The pan-European STOXX 600 index .STOXX closed up 0.4 percent, rising up to 0.6 percent after strong U.S. jobs data, before trading back at mid-day levels. On the week, the index fell 0.2 percent after two week of gains.

Data on Friday showed that U.S. job growth surged in April and the unemployment rate dropped to a more than 49-year low of 3.6 percent, pointing to sustained strength in economic activity. MKTS/GLOB

"The April (jobs) report allows the U.S. Federal Reserve to remain comfortably on hold for the next few meetings as it awaits more data, particularly on global risks and the inflation outlook," said analysts at TD Securities in a note.

Investors tend to dump stocks in a rising interest rate environment due to higher cost of capital and better appeal for bonds.

Shares around the globe had fallen on Thursday after the Fed signaled little appetite to adjust interest rates anytime soon, dampening hopes of a rate cut among market participants.

Gains of nearly 2 percent by London-listed shares of HSBC Holdings HSBA.L after the lender beat quarterly profit estimates, was the biggest boost to the pan-region index. lender Societe Generale SOGN.PA also rose as its capital buffer was stronger than expected, helping investors shrug off a decline in quarterly net profit. personal and household goods sector .SXQP rose 1.2 percent. Adidas ADSGn.DE jumped almost 10 percent to hit a record high after the sportswear maker's quarterly net profit rose. many European stocks are racking up all-time highs, and that underlines the bullish sentiment," said David Madden, an analyst at CMC (NS: CMC ) Markets, London.

Basic resources stocks .SXPP gained 1.4 percent as copper prices CMCU3 rebounded. MET/L Chrysler FCHA.MI jumped 4.6 percent after the carmaker said new U.S. pickup truck models would help the automaker achieve its 2019 profit targets and offset a weak first quarter. Air France-KLM AIRF.PA tumbled 5.5 percent as the Franco-Dutch group blamed higher fuel costs and tough price competition for its first-quarter loss. Swiss Re AG SRENH.S slid 3 percent to be one of the biggest drags on STOXX 600 on an unexpected fall in quarterly net profit. more than 7 percent fall by German telecoms group Freenet FNTGn.DE was the worst on the broader index after UBS downgraded the stock's rating to 'sell'.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ YTD Comparison between select European/Eurozone stock indexes as at 0808 GMT, May 3, 2019



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