European stocks on Friday rose 2 percent, clocking gains for the first time in six days after key US jobs data eased bets of a more aggressive US Federal Reserve, but logged their third straight week of falls on concerns over a spike in energy prices.
The pan-European STOXX 600 rose 2.04 percent to 415.97 points, but clocked a weekly decline of 2.37 percent.
Data showed that US employers hired more workers than expected last month, but moderate wage growth and a rise in the unemployment rate could ease pressure on the Fed to deliver a third 75 basis point interest rate hike this month.
Photo: Reuters
“If wage growth continues to moderate along with prices for goods and services the Fed may find a window to ease back on the pace of hiking, an event that would surely set up a relief rally in equities,” Commonwealth Financial Network portfolio management head Peter Essele said.
Investors sharply raised bets this week on a large 75 basis point rate rate hike from the European Central Bank at its meeting on Thursday following hawkish commentary from policymakers and another record high inflation print last month.
Money markets priced in an 80 percent chance of a 75 basis point hike at the meeting, compared with less than 50 percent on Aug. 26, Refinitiv data showed.
London’s blue-chip FTSE 100 gained 1.86 percent to 7,281.19 point, but was down 1.97 percent for the week.
Flows of Russian gas through the Nord Stream 1 pipeline to Germany remained at zero on Friday morning after Russia’s Gazprom halted supplies for a three-day maintenance outage on Wednesday.
“I think the global economy, especially the European economy, remains hostage to what Russia decides to do with gas flows, at least for this coming winter. We just have to brace for more potential trouble coming that way from Russia,” said Andrea Cicione, head of strategy at TS Lombard based in London.
Credit Suisse rose 6.1 percent following reports that Switzerland’s second-biggest bank is considering cutting about 5,000 jobs in a cost-reduction drive.
Ryanair Holdings PLC firmed 2 percent as the Irish low-cost carrier saw a record number of passengers last month for the fourth straight month.
Royal Philips NV slumped to its lowest level since July 2012 after a subsidiary of the Dutch medical device maker agreed to pay more than US$24 million to resolve alleged false claims over respiratory-related medical equipment, the US Department of Justice Department said.
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