Europe's STOXX 600 hit a record high on Friday and headed for its biggest weekly gain in more than a month, lifted by cyclical stocks as investors pushed back bets on an imminent U.S. rate move. Germany's DAX led regional bourses and set its own all-time high.
Europe's benchmark STOXX 600 reached a record high on Friday and was on track for its biggest weekly rise in over a month, driven by gains in cyclical stocks and by investors dialling back expectations for an imminent U.S. interest rate hike. The move showed the rally spreading beyond the tech names that had led it.
DAX leads the regional advance
The pan-European STOXX 600 rose 0.5% to 651.52 points by 0709 GMT, setting up its biggest weekly gain since mid-May. Germany's DAX led regional bourses with a 0.9% jump and also notched an all-time high.
Siemens gave the DAX its biggest boost, climbing 1.2% after brokerage Kepler Cheuvreux upgraded the industrial group to "hold" from "reduce".
Defence and cyclicals broaden the rally
Defence stocks gained 0.8% as Russia bombarded Ukraine with its deadliest strike this year, with investors anticipating more defence spending and output during periods of geopolitical tension. Those stocks have posted the strongest gains this week.
Cyclicals such as industrials, banks and financial services also advanced as the rally, previously concentrated in tech, broadened out, helped by easing Middle East tensions. Thursday's softer-than-expected U.S. jobs report trimmed market bets that the Federal Reserve may wait until later in the year before raising rates, while global business activity reports broadly pointed to a resilient economy.
Among individual movers, French voucher and benefits company Pluxee rose 6.4% after reporting a smaller-than-expected drop in organic sales in the third quarter.
Source: Reuters
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