European shares close at seven-month highs in best week since March

European shares closed at seven-month highs on Friday (6), boosted by mining and oil shares, while data that pointed to a moderation in job growth in the United States helped to calm nervousness about the high trajectory of the interest from the Federal Reserve.

The pan-European STOXX 600 index closed up 1.16% at 444.42 points, its highest level since May. For the week, it posted gains of 4.6%, best week in over nine months.

Europe’s basic resources sector jumped 2.5%, leading sectoral gains, after a rebound in China-exposed miners amid higher copper prices. Energy stocks rose 1.8%, boosted by rising oil prices.

European shares initially struggled for direction in the early hours of trading but gained traction after US data showed 223,000 non-farm jobs opened in December, less than the previous month, while an advance of 0. 3% in average income came in below expectations and also lower than the previous month.

Turning to economic data in Europe, economic sentiment in the euro zone improved in December for the first time since the outbreak of the war in Ukraine, with more optimism across all sectors of the economy and a sharp drop in inflation expectations.

Rate-sensitive technology stocks, which had been lower earlier, closed up 1.8% amid sharp declines in key euro zone bond yields.

• In LONDON, the Financial Times index advanced 0.87%, to 7,699.49 points.
• In FRANKFURT, the DAX index rose 1.20% to 14,610.02 points.
• In PARIS, the CAC-40 index gained 1.47%, at 6,860.95 points.
• In MILAN, the Ftse/Mib index appreciated by 1.40%, at 25,180.35 points.
• In MADRID, the Ibex-35 index registered an increase of 1.09%, to 8,701.10 points.
• In LISBON, the PSI20 index appreciated by 0.48%, to 5,909.35 points.