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.
“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.
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