Europe midday: Investors pause for breath ahead of US jobs data

Stocks on the Continent are holding higher ahead of the monthly US non-farm payrolls report, boosted by recent positive headlines around various potential Covid-19 vaccines.

The possibility of further economic stimulus in the States given the still significant risks to the outlook might also be playing a hand.

Echoing that point of view, analysts at Rabobank said: "Indeed, one could argue that, in the absence of a vaccine, a resurgence of infections is the most bullish scenario as it replaces an uncertain recovery path with the certainty of beefed up asset purchases."

Nevertheless, for most traders, recent spikes in Covid-19 cases in several US states were above all a source of concern.

Against that backdrop, at noon the benchmark Stoxx 600 was rising by 1.17% to 365.41.

The German Dax was jumping by 1.76% alongside to reach 12,475.57 while the FTSE Mibtel was adding 1.94% to 19,705.81.

The Stoxx 600 sector gauge for Banks remained the best performing segment of the market, trading up by 3.55%, alongside a 2.95% advance for Travel&Leisure names and a 2.77% jump for Automobiles and Parts.

At the individual company level, Wirecard AG was again to be found at the bottom of the pile on the Stoxx 600, after police and prosecutors raided its headquarters in Munich and various offices in Austria and Germany.

Stock in BAM Groep were also under the cost after the Dutch construction group warned that it would incur in a "significant" loss for the front half of 2020.

Linked to gains in European stocks specifically, IG's Josh Mahony chipped in saying: "The big question is whether we will see the Coronavirus cases kept low enough to allow for increased travel, with another lockdown or resumption of quarantine rules likely to deal a major blow to the travel sector if implemented."

On the economic side of things, euro area unemployment surprised to the downside, printing at 7.4% for May against April's reading of 7.3% and economists' forecasts for 7.7%.

The pace of increase in registered unemployed in Spain continued to slow in June, increasing by 5,107, following a rise of 26,000 for May, while in March and April combined they soared by roughly 300,000.

Nonetheless, the summer months in Spain typically see a sharp rise in hiring - not the opposite.

Producer prices in the Eurozone meanwhile fell at a year-on-year clip of 5.0% in May, which was down from the 4.5% advance seen in April (consensus: -4.6%).