July 3 (Reuters) – Europe’s benchmark STOXX 600 hit a record high on Friday and was set for its biggest weekly gain in over a month, underpinned by gains in cyclical stocks and as investors pushed back expectations for an imminent U.S. interest rate hike.
The pan-european STOXX 600 was up 0.5% at 651.52 points by 0709 GMT and was set for its biggest weekly rise since mid-May. Germany’s DAX index led gains among regional bourses with a 0.9% jump and also notched an all-time high.
Germany industrial group Siemens jumped 1.2% and was the biggest boost to the DAX after brokerage Kepler Cheuvreux upgraded the stock to “hold” from “reduce”.
Defence stocks were up 0.8% as Russia bombarded Ukraine with its deadliest strike this year. Investors anticipate more defence spending and output in times of geopolitical tensions.
Defence stocks have seen the strongest gains this week, along with cyclicals such as industrials, banks and financial services as the rally, previously concentrated in tech stocks, broadens out, aided by easing Middle East tensions.
Thursday’s softer-than-expected U.S. jobs report also dialled back market expectations that the Federal Reserve may wait until later in the year before raising rates, while global business activity reports broadly suggested a resilient economy.
Among others stocks, French voucher and benefits company Pluxee gained 6.4% after posting a smaller-than-expected drop in organic sales in the third quarter.
(Reporting by Johann M Cherian in Bengaluru; Editing by Sonia Cheema)
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