Europe midday: Stocks continue to race ahead before US jobs report
Investors are continuing to push equities higher, led by gains in cyclicals such as auto stocks ahead of the release of the December US jobs report.
As of 1206 GMT, the benchmark Stoxx 600 was advancing 0.59% or 2.32 points to 396.0, alongside a 0.96% or 126.11 jump on the Dax to 13,293.75 and an advance of 0.77% or 174.59 points to 22,685.85.
Automobiles and Health care issues were among the best performers on the Stoxx 600, rising by 1.33% to 642.82 and 1.01% to 740.33, respectively.
Ahead of the key monthly US employment report, euro/dollar was dipping 0.21% to 1.2046 on the back of a weaker-than-forecast reading on Eurozone consumer prices.
Commenting on the market backdrop, David Madden at CMC Markets told clients: "US equity markets notched further record highs overnight, with the Dow Jones closing above 25,000 for the first time after ADP Employment, a widely regarded Non-Farms precursor, came in significantly above estimates, with Goldman Sachs and 3M leading the index higher. The S&P 500 closed at a record high too thanks to Financials strength, while the Tech-focused Nasdaq also climbed, albeit be a lesser amount than peers."
In fresh economic news, the headline euro area consumer price index dipped from a 1.5% year-on-year clip in November to 1.4% for December (consensus: 1.5%), while the rate of advance in so-called 'core' inflation was steady at 0.9% on the year (consensus: 1.0%).
Among notable broker recommendations on Friday, analysts at Deutsche Bank upgraded their recommendation on shares of Volkswagen from 'hold' to 'buy' and lifted their target price from €170 to €210.
JP Morgan did the same with Fiat Chrysler, but from 'neutral' to 'overweight'.