European Stocks Extend Gaining Streak Ahead of US Payroll Report

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European Stocks Extend Gaining Streak Ahead of US Payroll Report

European stocks continued their longest run of gains since October before a US job report that may indicate the economy is growing solidly.

The Stoxx Europe 600 index added 0.2% as of 9:38 am in London, extending gains for the ninth straight day. Standard and Poor’s 500 index increased 0.2%

However, the volume of traded shares in companies listed on the Stoxx 600 was 26% below the 30-day average.

Spain, Italy, Ireland saw securities yields drop to all-time levels as junk-rated corporate bonds yield lost to a record low. The euro dropped to a one-month low against the dollar. Copper surged 0.6% as Brent hiked 0.9%.

As the US Federal reserve pegs the timing for stimuli cuts on employment rates, investors will be keen on today’s non-farm job report, which is expected to show the highest rise in employment since November.

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“People are waiting ahead of payrolls. It’s not correct to assume rates are rising anytime soon and the backdrop for developed-market equities, even at all-time highs, is still for an expansion in earnings,” George Boubouras of Melbourne-based Equity Trustees Ltd is quoted by Bloomberg as saying.

Remy Cointreau SA was one of the stunning performers in Europe, with the firm’s shares increasing 4.6% on speculation that the maker of spirits may be targeted by Brown Forman Corp for acquisition.

Renault SA shares jumped 1.7% as Fiat SpA edged 1.6% higher, after the UBS upgraded the carmakers’ ratings from “neutral” to “buy”, as reported by Marketwatch.

DAX 30 of Germany added 0.2% to hit 9,651 as CAC of France hit 4,457.49 after surging 0.2%.

The FTSE 100 of UK increased 0.3% to stand at 6,677.46. UK’s EasyJet PLC stocks moved 2.2% higher on improved March traffic data.

Bloomberg estimates that the expected US payroll report at 8:30 am in Washington will show an addition of 200,000 jobs in March.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com