LONDON — Shares listed in Europe rose Friday as investors weighed key U.S. economic data that could influence the Federal Reserve’s monetary policy decisions this year.
The pan-European Stoxx 600 index was up 0.7% as of 2:00 p.m. in London (9:00 a.m. ET), with major regional exchanges and most sectors in positive territory.
Data released Friday by the U.S. Bureau of Labor Statistics, nonfarm payrolls increased by 50,000 in December, lower than November’s downwardly revised 56,000 and below the Dow Jones estimate of 73,000.
European actions monitored before marketing winnings on Wall Street as the numbers raised hopes that a slowing labor market will lead to an interest rate cut from the Fed when it meets later this month.
Defense stocks extended their gains for a fifth straight day on Thursday, adding 0.3% in the afternoon. This follows that of President Donald Trump call for increased US military spending and the rhetoric continues about the annexation of Greenland.
Trump called for a 50% increase in U.S. military spending, aiming for a $1.5 trillion budget in 2027, in a Truth Social article Wednesday evening..
He has also increased calls for Greenland to be placed under Washington’s control and is considering various options to achieve this: including military action. This could mean the end of NATOsince the United States and Denmark, responsible for the defense of Greenland, are both members.
Meanwhile, the CEO of the mining company Amaq CNBC Label the United States was considering investing in critical mining projects in Greenland. It precedes high-stakes discussions between Washington and Danish officials over the island’s future, as Trump maintains its importance to US national security.
Actions in motionLooking at individual stocks, the British aerospace group Rolls-Royce hit a new high on Friday and was last seen up 1%, supported by the defense sector and positive sentiment towards the UK. FTSE100.
It was confirmed on Friday morning that the British mining company Rio Tinto is in preliminary talks to acquire a Swiss company Glencorein what could create the largest mining company in the world. Glencore was last seen up 10%.
Shares of European oil companies have fallen this week as investors continue to react to Trump’s action in Venezuela, but pared some gains in early deals reached Friday. P.A. was last up 1.8%, Shell added 2.4% and TotalEnergies gained 2.2%.
It’s been a busy week for UK retailers, with reports of TESCO, Marks and Spencer And Sainsbury’s. Each reported strong Christmas food sales.
Tesco has raised its year-end profit forecast for the 2026 financial year to £3.1 billion from £2.9 billion ($3.9 billion). Its stock was last seen down 1.3%.
Sainsbury’s reported a 3.4% rise in underlying sales in the third quarter and reiterated its forecast for a profit of more than £1 billion for the full year, roughly in line with its last financial year’s result. Shares in the UK’s second largest supermarket chain were last seen down 4.9%, sitting near the bottom of the European benchmark and putting it on track for its worst day since December 8.
Elsewhere, European lawmakers have provisionally approved Friday, a controversial trade agreement with the South American bloc Mercosur. The agreement, which lasted decades, saw strong opposition from farmers and some EU member states, fearing that this could create unfair competition for European agriculture.
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— CNBC’s Olivia Levieux contributed to this report.
