Prime Highlights-
- Healthcare stocks lead European shares higher, STOXX 600 on track for fourth weekly gain.
- Oil prices climb toward $83 a barrel amid renewed Middle East tensions.
Key Facts-
- Genmab shares jump 7.2 percent on higher revenue, raised full year outlook.
- Munich Re profit rises 6 percent in second quarter, beating expectations of a decline.
Background-
European shares moved higher, led by strength in healthcare stocks, even as rising oil prices and renewed Middle East tensions kept investors cautious.
The pan-European STOXX 600 rose 0.2 percent to 659.59 points, putting the index on track for a fourth straight weekly gain. Renewed geopolitical concerns have tempered the optimism that pushed markets toward record highs, with investors weighing the inflationary impact of higher energy prices ahead of a closely watched US jobs report.
Brent crude futures extended their climb to $83.29 a barrel, driven by concerns around the Strait of Hormuz. Iran, working alongside Oman, proposed restricting vessels deemed hostile from using the strait and imposing heavy fines on violators.
Attention now turns to US payrolls data for signals on the interest rate outlook. Job growth is expected to have picked up pace, pointing to continued strength in the labor market and giving the Federal Reserve room to keep its focus on inflation.
Earnings results also shaped market moves. Insurance stocks eased 0.6 percent, with Munich Re shares down 3.7 percent even after the reinsurer reported a 6 percent rise in second quarter net profit, beating expectations of a decline.
Healthcare stocks led sector gains, climbing 1.3 percent. Genmab shares jumped 7.2 percent after the cancer drugmaker reported higher first half revenue and raised its full year outlook.
