European stocks climb on U.S. jobs outlook
European stocks edged up slightly at the start of Friday, amid expectations of achieving their best weekly gains since late June, driven by strong earnings results in the pharmaceuticals, energy infrastructure, and telecommunications sectors. The STOXX Europe 600 index rose by 0.2% and is headed for weekly gains of up to 1.4%. Major indices such as the DAX, CAC 40, and FTSE 100 also saw modest increases, with forecasts suggesting European corporate profits could grow around 21% annually in the second quarter—a significant upgrade from previous estimates. Globally, bond yields and oil prices declined, but geopolitical risks have resurfaced after the Iranian parliament discussed a bill to prevent hostile ships from passing through the Strait of Hormuz, complicating diplomatic efforts to restore navigation security. The market is also awaiting the U.S. July employment report, with expectations of a faster job creation pace and an unemployment rate remaining steady at 4.2%. Meanwhile, the Federal Reserve maintains a cautious stance on raising interest rates in September, as investors focus on the strength of the U.S. labor market and its implications for global monetary policy.
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