Europe close: Stocks advance after April US jobs report
European shares were higher on Friday, as analysts reacted positively to the US jobs report for the month of April.
Michael Hewson, chief market analyst at CMC Markets UK, said the data revealed a "resilient" labour market that "pushes back on the idea of rate cuts in the short term."
Investor sentiment also got a boost from the latest results out of tech giant Apple.
The pan-regional Stoxx 600 rose 1.08% to 465.31, alongside a 1.44% advance for the German Dax to 15,961.02 while the Italian FTSE Mib jumped 2.54% to 27,348.57.
In European economic news, retail sales in the eurozone fell by 3.8% in March on an annual basis, worse than the 3.1% forecast as the cost-of-living crisis continues to hit consumer spending power, according to official data released on Friday.
Sales fell 1.2% in month-on-month terms.
"Retail continues to struggle with the loss of consumer purchasing power and a shift in preference away from goods and towards services, now that the Covid-19 pandemic has ended," said analysts at ING.
Meanwhile, German factory orders also plunged in March, missing expectations and reversing previous gains.
According to the Federal Statistics Office, new orders in manufacturing fell 10.7% month-on-month, and by 11% on March 2022. That compares to a month-on-month increase of 4.5% in February. Analysts had been expecting a far more modest fall, of around 2.2%.
It was the strongest decline since April 2020, at the start of the pandemic.
Investors were also digesting the latest data out of China, showing growth in the services sector was a little weaker than expected in April.
The Caixin services purchasing managers’ index dipped to 56.4 from 57.8 in March, coming in below consensus expectations for a reading of 57.0.
On the equities front it was a much quieter day after a deluge of earnings reports and trading statements across the Continent.
Shares in British Airways owner IAG were higher as the company beat forecasts and lifted guidance after reporting a first-quarter operating profit in what is traditionally quiet period for airlines.
Norwegian renewable energy producer Scatec shares surged 17% after after strong results.
Adidas shares jumped 9% after a better-than-expected first quarter, but the German sportswear manufacturer warned 2023 was still set to be "disappointing".
The brand, which had been hit hard after its partnership with controversial rapper Kanye West abruptly ended, said currency-neutral revenues were largely flat year-on-year at €5.27bn in the three months to March end.