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European Stocks Close Higher On Strong Germany Inflation, U.S. Jobs Data

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European stocks closed higher on Friday, and most of the major markets in the region posted strong weekly gains, after data showed a bigger than expected addition in U.S. non-farm payroll employment, and a drop in the unemployment rate.

Data showing a notable drop in Germany’s consumer price inflation in the month of November contributed as well to the positive mood in the European markets.

The pan European Stoxx 600 climbed 0.74%. The U.K.’s FTSE 100 advanced 0.57%, Germany’s DAX gained 0.78% and France’s CAC 40 surged 1.32%, while Switzerland’s SMI ended stronger by 1.07%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Netherlands, Norway, Poland, Portugal, Spain and Sweden ended higher.

Greece and Russia edged up marginally, while Iceland, Ireland and Turkey closed weak.

Oil stocks gained after calls from Saudi Arabia and Russia for OPEC+ members to joint output cuts.

In the UK market, Antofagasta rallied more than 4.5%. IHG, Ashtead Group, Burberry, Barclays, Halma, Croda International, Carnival, TUI, Diageo, Kingfisher, RightMove, Flutter Entertainment, BP and Melrose Industries gained 2 to 3.5%.

Ferguson, Phoenix Holdings, Informa, BAE Systems, Whitbread, Lloyds Banking, St. James’s Place, Smith & Nephew, J Sainsbury, Schrodders and Experian also ended sharply higher.

Anglo American Plc tanked more than 17% after it announced plans to slash production in a bid to cut costs.

Berkeley Holdings ended down 3.6% after it flagged persisting housing demand woes. Imperial Brands, BT, Hiscox and Segro lost 1 to 2%.

In the German market, Sartorius, Zalando, Fresenius Medical Care and BMW climbed 3 to 3.6%.

Infineion and Deutsche Bank gained about 2.2% and 2.1%, respectively. Volkswagen, Deutsche Post, Siemens Healthineers, Adidas, Porsche, Mercedes-Benz, Symrise and HeidelbergCement also ended notably higher.

Siemens Energy ended down 2%. Vonovia drifted down by about 1.4%, and Merck shed 0.8%.

In Paris, LVMH gained nearly 4%. Kering, Thales and Legrand climbed 2.5 to 3.4%. Airbus Group gained 2.5% following a rating upgrade by Deutsche Bank.

TotalEnergies, Hermes International, Schneider Electric, Saint-Gobain, Societe Generale, Credit Agricole, Pernod Ricard, STMicroElectronics and Sanofi gained 1.3 to 2%.

Vivendi shares rallied 2.7%. The media conglomerate is set to replace digital payment group Worldline on the CAC 40 index, effective from Dec. 18.

Final data from Destatis showed Germany’s consumer price inflation eased to the lowest level in nearly two and a half years in November, as estimated. The consumer price index registered an annual increase of 3.2% in November, following a 3.8% rise in October.

A survey report compiled by S&P Global showed UK employers reduced recruitment in November amid weaker economic outlook. The report said permanent staff appointments declined at the second-fastest paace since June 2020, and temporary billings declined after two months of expansion.

Data from the Labor Department said non-farm payroll employment in the U.S. jumped by 199,000 jobs in November after rising by 150,000 jobs in October. Economists had expected employment to climb by 180,000 jobs.

The Labor Department also said the unemployment rate dipped to 3.7% in November from 3.9% in October. The unemployment rate was expected to remain unchanged.

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