By Carla Mozee, MarketWatch

Stoxx Europe 600 on track to rise for 6th straight day

European stocks were on track to add to a winning streak Monday, extending gains alongside other global markets after the U.S. jobs report highlighted the health of the world's largest economy.

European markets also got a boost from German utility stocks after a complex deal within the industry was reached over the weekend.

How markets are moving

The Stoxx Europe 600 index rose 0.3% to 379.20, with the utilities group rising the most.

The basic materials group was the only sector in the red. On Friday, the pan-European index closed 0.4% (http://www.marketwatch.com/story/german-stocks-fall-as-exports-trump-tariffs-bite-as-european-equities-seesaw-2018-03-09) higher, and that allowed the benchmark to end last week up by 3.1%.

Germany's DAX 30 index surged 0.7% to 12,435.26, extending last week's rise of 3.6%, its best week since December 2016, according to FactSet data.

France's CAC 40 index was up 0.3% at 5,288.80, and Spain's IBEX 35 popped up 0.6% to 9,747.10.

But the U.K.'s FTSE 100 index was searching for firm direction (http://www.marketwatch.com/story/ftse-100-struggles-to-keep-grip-on-gains-2018-03-12) around 7,229.72.

The euro bought $1.2327, up from $1.2307 late Friday in New York.

What is driving the market

European stocks were heading for a sixth consecutive win, building on the advance logged Friday, when global stock markets rose after the February nonfarm payrolls report from the U.S.

The report showed the world's largest economy added more jobs than expected (http://www.marketwatch.com/story/us-adds-313000-jobs-in-february-in-biggest-gain-in-a-year-and-a-half-2018-03-09), but wage growth fell shorts of forecasts. That signaled a healthy U.S. economy but eased fears that wages would add to inflationary pressures.

Asian stock markets jumped Monday, while U.S. stock futures (http://www.marketwatch.com/story/us-stock-futures-higher-with-wall-street-set-to-extend-last-weeks-gains-2018-03-12) were gaining ground.

But mining stocks in Europe struggled after U.S. President Donald Trump's order last week to impose protectionist tariffs of 25% for steel and 10% for aluminum. European Union officials were still working on landing an exemption from the levies. Mexico, Canada and Australia have been exempted.

What strategists are saying

"Global markets continue to advance after Friday's US employment numbers effectively gave the green light to investors to buy equities," said Rebecca O'Keeffe, head of investment at Interactive Investor, in a note.

"Confirmation that there is a resurgence in the number of Americans joining the labour force, increasing the participation rate, is a huge boost to U.S. production prospects and growth without the downside risk of wage inflation. Not too hot, not too cold; Goldilocks appears to be alive and well," she said.

Stocks in focus

Renewable energy Innogy SE (IGY.XE) rallied 13% after E.On SE said Sunday it has agreed in principle to acquire RWE AG's 76.8% stake in Innogy (http://www.marketwatch.com/story/german-energy-titans-eon-rwe-swap-assets-2018-03-12). The move would leave E.On focused on energy networks and consumer-related operations. RWE shares (RWE.XE) leapt 8.8%, and E.On (EONGY) moved up 5.2%.

GKN (GKN.LN) shares rose 1.6% after Melrose Industries (MRO.LN) lifted its purchase offer to 8.1 billion pounds (http://www.marketwatch.com/story/melrose-raises-gkn-offer-to-81-billion-2018-03-12) ($11.2 billion), but said it won't raise the amount again "under any circumstances." GKN, which has spurned Melrose's previous bids, said Friday it's merging its driveline business with Dana Inc. (DAN) in a deal worth $6.1 billion.

At the bottom of the Stoxx 600, Just Eat PLC (JE.LN) shares fell 4.1% after Deutsche Bank downgraded its rating of the online-food delivery services company to sell from hold.

Among metals producers, ArcelorMittal SA (MT) fell 0.5%, and steel tubes maker Tenaris SA (TEN.MI) fell 1.1%. Iron ore producers Rio Tinto PLC (RIO) and BHP Billiton (BLT.LN) each shed 1%, while Glencore PLC (GLEN.LN) lost 0.7%.

 

(END) Dow Jones Newswires

March 12, 2018 06:54 ET (10:54 GMT)

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