Europe open: Stocks push higher; non-farm payrolls to be main focus this week
European stocks pushed higher in early trade as investors continued to mull over Federal Reserve Chair Janet Yellen’s speech at Jackson Hole at the end of last week.
At 0845 BST, the benchmark Stoxx Europe 600 index was up 0.5%, Germany’s DAX was 0.9% higher and France’s CAC 40 was up 1%.
At the same time, oil prices were a touch firmer, with West Texas Intermediate up 0.3% at $47.11 a barrel and Brent crude up 0.2% at $49.37.
Markus Huber, a trader at City of London Markets, said: “European shares are trading firmer this morning receiving an early boost from higher markets in Asia and the US overnight. Unlike last week there is plenty of economic data scheduled to be released in the coming days with all eyes on US non-farm payrolls on Friday.
“Fed chief Yellen made it very clear during her speech in Jackson Hole last week that the timing of the next rate hike will very much depend on the strength of the economic data in the coming weeks. Consequently should employment figures turn out very strong again this Friday the likelihood of an interest rate increase as early as September will go up markedly.”
In corporate news, BHP Billiton edged higher after a review conducted by a panel of experts concluded that the Samarco dam disaster at a mine part-owned by the company in Brazil last year was caused by construction and design flaws.
The, report commissioned by BHP, said problems at the dam made it more unstable, causing “liquefaction” in the dam wall.
Distribution and outsourcing group Bunzl rallied after it reported a rise in first-half profit as revenue grew and the company lifted its interim dividend. Also on Tuesday, Bunzl announced that it has completed two further acquisitions in Canada and has entered into an agreement to acquire a business in Hungary.
Elsewhere, Germany’s Wirecard racked up strong gains after Barclays upgraded the stock to ‘overweight’ from ‘equalweight’.