European stocks post best week since March on profits

Bloomberg

European stocks closed steady at a record, posting their biggest weekly gain in five months, as traders
assessed a better-than-expected increase in US payrolls and positive earnings against delta variant risks.
The Stoxx 600 Europe Index ended flat in London at a historical high, bringing the week’s gain to 1.8%. Banks were the best performers, with ING Groep NV advancing after profit beat expectations. Insurance stocks also surged as Allianz SE jumped the most since March after raising its outlook and announcing a new share buyback, while Prudential Plc shares gained on expectations the demerger of its US insurance unit should complete soon.
Investors are weighing strong corporate earnings against the risk of the possible end of stimulus measures after data showed US employers added the most jobs in nearly a year and the unemployment rate declined faster than forecast. The spread of the delta variant and concerns over China’s regulatory crackdown are also in focus.
“The employment data is starting to shine with rocketing payroll numbers,” said Richard Flynn, UK Director at Charles Schwab.
“Today’s positive numbers are an encouraging sign for markets that the economic reopening has kicked into a higher gear.”
The European benchmark index has advanced the most since mid-March this week, after setting a series of five all-time highs, which is the longest streak since June.
The region’s reporting
season is ending on a
strong note, according to Barclays Plc strategist Emmanuel Cau.