Europe close: Stocks finish week on a positive note after US jobs data

(Sharecast News) - European markets were mostly higher at the end of the week following the release of a better-than-expected reading on the US jobs market.
"Today's jobs report provided an overwhelmingly positive assessment of the US economy, with a payrolls beat, rising wage growth, and declining unemployment providing plenty for the Fed to mull over," said Josh Mahony, senior market analyst at IG.

"With the US CPI due next week, particular attention should be paid to the 4% wages growth figure despite increased hiring in areas that would ordinarily drive down average wages."

The pan-European Stoxx 600 ended the day flat at 469.97, as the German Dax edged up 0.11% to 15,761.45, while the FTSE Mibtel was 1.3% higher to 26,000.28.

According to the US Department of Labor, non-farm payrolls jumped by 943,000 in July, alongside faster than expected wage growth.

Nevertheless, labour supply remained constrained due to a combination of enhanced benefits, childcare problems and possibly by Covid stimulus payments too, Ian Shepherdson, chief economist at Pantheon Macroeconomics, said.

In equity news, shares in Maersk edged higher as the world's largest container shipping firm posted a sharp increase in second-quarter earnings as congestions and bottlenecks continue to drive up shipping rates.

German insurer Allianz rose as the company beat second-quarter profit expectations with €2.225bn in net income, as it raised its outlook and announced €750m share buyback program.

London Stock Exchange shares were one of the top gainers on the Stoxx 600 after it reported a 4.6% rise in first-half income.

Shares of German meal kit delivery company Hellofresh slipped 1%, having early fallen to the bottom of the European blue chip index as it said it was accelerating investments and lowering profits forecasts.