European stocks close at 7-month high

European stocks closed at a seven-month high on Friday, led by mining and oil stocks, while data pointing to a moderation in job growth in USA helped calm nerves about the Fed’s rate-hike trajectory.

The index STOXX 600 closed with a rise of 1.2%, its highest level since May. For the week, it posted gains of 4.6%, its best result in more than nine months.

The European commodity sector rose 2.5%, leading the sector’s advance, as miners exposed to China rebound amid rising copper prices. Energy stocks gained 1.8%, boosted by higher oil prices.

European stocks struggled to find direction in the early hours but gained momentum after US data showed nonfarm payrolls rose by 223,000 jobs in December, less than the previous month’s data, while a The 0.3% increase in median revenue was lower than expected and also lower than the prior month.

Economic data in Europe also buoyed sentiment, as German retail sales rose in November, adding to a string of positive figures this week that have signaled a milder-than-expected recession and easing of price pressures in some countries.

On the other hand, economic confidence in the euro zone improved in December for the first time since the start of the war in Ukraine, with greater optimism in all sectors of the economy and a sharp fall in inflation expectations.

Interest rate sensitive technology stocks, which had fallen earlier in the day, ended up 1.8% amid a sharp fall in yields on major euro zone bonds.

Healthcare stocks rose 0.8%, with Roche Holding AG jumping 0.9% after the Swiss drugmaker said the US Food and Drug Administration granted priority review to its Glofitamab bispecific antibody.

Shell’s shares rose 1.7% after the oil company said profits from its natural gas trading operations were likely to rise significantly in the fourth quarter of last year, despite a sharp drop in output due to disruptions to operations. plants.