Europe's STOXX 600 ends week at all-time high on earnings support, soft US jobs data

CSG NV

07/08/2026 10:12

Updates with closing prices
Kingspan rises after lifting profit forecast
CSG falls despite half-year revenue beat
Genmab jumps after outlook raise, lifting healthcare stocks
US nonfarm payrolls unexpectedly decline in July
European corporate profits set to grow at fastest rate since 2022
By Tharuniyaa Lakshmi, Ragini Mathur and Avinash  P
Aug 7 (Reuters) - Europe's STOXX 600 rallied to a fourth consecutive record close on Friday, led by technology stocks and a largely positive slate of corporate earnings, while softer U.S. jobs data further supported sentiment.
The pan-European STOXX 600 .STOXX closed 0.3% higher, reaching a record 660.25 points and marking a fourth consecutive weekly advance.
Markets capped a busy earnings week that pushed the benchmark to multiple record highs, while expectations of a potential U.S.-Iran agreement also supported sentiment throughout the week. 
Technology shares .SX8P added 1.9% in the session, tracking gains from Wall Street, and were the best performing sector on the STOXX 600 this week.
Investors parsed the U.S. nonfarm payrolls report that showed the world's largest economy surprisingly shed jobs last month, reducing the perceived chance of an interest rate hike by the Federal Reserve in September.
"I don't think there's one reason behind this rally in European markets. All today's payrolls number has done is basically given it an extra boost," said Michael Hewson, senior market analyst at iForex.
Healthcare stocks .SXDP rose 1.2%. Genmab GMAB.CO jumped 6.5% after the cancer drugmaker reported higher first-half revenue and raised its full-year outlook.
Novo Nordisk NOVOb.CO and Abivax ABVX.PA gained 3.9% and 3.5%, respectively.
Companies in the STOXX 600 are now expected to report second-quarter earnings growth of more than 22%, the strongest since the third quarter of 2022, according to data compiled by LSEG.
"Overall, the reporting season reinforces the view that European corporate fundamentals remain healthy, particularly among higher-quality investment-grade issuers," said Gordon Kerr, European macro strategist at KBRA. 
"However, markets are becoming increasingly selective as elevated valuations leave less room for disappointment."
Kingspan KSP.I surged 17.8% after results, topping the STOXX 600 gainers, as the building materials firm raised its profit forecast on booming data centre demand.
Czech defence firm CSG CSG.AS fell 8% despite reporting first-half revenue above expectations. 
Miners .SXPP added 0.3%, lifted by firmer prices of precious and base metals.
Insurers .SXIP dipped 0.2% after Munich Re MUVGn.DE slid 1.4% despite reporting a 6% rise in second-quarter net profit, beating expectations of a decline.
Elsewhere, Stellantis STLAM.MI dropped 1.7% after Bernstein cut the Franco-Italian automaker's rating to "underperform" from "market perform".
On the geopolitical front, Iran, working with Oman, proposed banning vessels deemed hostile from the Strait of Hormuz and imposing steep fines on those breaching the rules.

(Reporting by Tharuniyaa Lakshmi, Ragini Mathur and Avinash P in Bengaluru; Editing by Janane Venkatraman, Vijay Kishore and Hugh Lawson)
((tharuniyaa@thomsonreuters.com))