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Europe close: Stocks edge higher as weak US jobs data tempers Fed fears

Fri 07 August 2026 13:34 | A A A

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(Sharecast News) - European stocks closed higher after hitting a fresh intra-day record on Friday as investors digested a sharply weaker US jobs report and kept a close eye on tensions around the Strait of Hormuz.

The Stoxx 600 rose 0.3% to 660 at the close, having hit 663 during the session, with Germany's DAX up 0.8%, France's CAC 40 gaining 0.35%, and London's FTSE 100 edging 0.3% higher.

US nonfarm payrolls fell by 23,000 in July, sharply missing forecasts for an 80,000 increase, while the unemployment rate dipped to 4.1% as participation slipped. Downward revisions to prior months reinforced signs of cooling momentum in the labour market, easing pressure on the Federal Reserve to tighten policy further.

Oil prices whipsawed throughout the day with Brent crude erasing morning gains by midday but then rising again in the afternoon session to be 1.15% higher at $83.64 a barrel after a report that Israeli and US shipping would be banned from the key waterway under new plans drafted by Iran.

Iranian state news outlet Fars on Thursday reported that restrictions would also extend to "countries and individuals that have caused damage to Iran" until that harm is "compensated".

Iran plans to issue penalties of up to 20% of the value of the cargo of those who violate the terms of the agreement, which is currently under review, the report added.

Meanwhile, regional officials said Iran and Oman were close to finalising a deal on shipping through the strait.

In local economic news, German exports and industrial production beat expectations for June, according to official data published on Friday.

Exports rose 0.9% on the month, above expectations of a 0.2% increase, while imports jumped 4.4%, according to the Federal Statistics Office.

Industrial production also surprised to the upside, edging up 0.2% versus expectations for a 0.1% gain, reinforcing the view that Europe's largest economy is stabilising after a weak start to the year.

In equity news, Amrize shares slumped after quarterly results. Kingspan surged after lifting its profit forecast on datacentre demand and Genmab jumped after lifting its fullyear outlook.

Reporting by Frank Prenesti for Sharecast.com

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