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UPDATE 2-Strong U.S. jobs numbers, trade optimism bolster European shares

Published 06/12/2019, 18:09
Updated 06/12/2019, 18:09
© Reuters.  UPDATE 2-Strong U.S. jobs numbers, trade optimism bolster European shares

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* STOXX 600 closes up 1.16%; down 0.02% over the week
* U.S. jobs figures trounce expectations
* Trump's trade comments spur risk-on mood
* Marks & Spencer rises on JPM upgrade to "neutral"
* London's FTSE 100 logs best day since July

(Updates prices to close, adds stocks reaction to U.S. jobs
data)
By Susan Mathew and Arjun Panchadar
Dec 6 (Reuters) - European shares closed higher on Friday,
extending gains after impressive U.S. jobs data bolstered
sentiment buoyed by positive statements from Washington
regarding trade talks with China.
The pan-European STOXX 600 index .STOXX finished up 1.2%,
helping erase nearly all of a tumultuous week's losses.
Stocks swung wildly this week on conflicting statements and
reports regarding the progress of U.S.-China trade negotiations,
as well as some weak economic indicators from Europe.
Data on Friday showed that U.S. job growth increased by the
most in 10 months in November, confirming that the economy
remained on a moderate expansion path. That helped quell some
fears of a negative rub-off on growth from a trade war with
China.
"The market has been looking at the data with rapt
attention, and of course we had what could be called a blowout
number," said Ken Odeluga, a market analyst at City Index.
"The possibility of the beginnings of some sort of slowdown
tends to be obliviated by a reading like that. And the details
tend to support it as well."
This added to optimism that stemmed from Trump's comments
on Friday that discussions with China were "moving right along",
which was later echoed also by White House adviser Larry Kudlow.
From their end, Beijing officials said they will waive import
tariffs for some soybeans and pork shipments from the United
States. Gains on the day in Europe were broad-based and led by
commodity-linked stocks. Retail shares were also in the top mix,
with Marks & Spencer MKS.L rising 4.1% after JP Morgan
upgraded the stock to "neutral" from "underweight". London's FTSE 100 .FTSE posted its best day in more than
four months as sterling weakened and as energy firms rode oil
prices higher. On the week, however, the FTSE posted its worst
loss in two months. GBP/ O/R .L
Investors are bracing for an action-packed week as Britons
go to vote on Dec. 12, with recent opinion polls suggesting the
ruling Conservatives will win an outright majority needed for
Britain's smooth exit from the European Union.
Limiting gains on the Frankfurt index .GDAXI were figures
showing Germany's industrial output unexpectedly dropped in
October, reviving worries over the growth outlook for Europe's
economic powerhouse. Among other stocks, shares in Ipsen IPN.PA slid 13.6%
after the French pharmaceutical company put on hold clinical
studies of palovarotene, which treats bone disorders.

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