European stocks climb with U.S. jobs data.
European stock markets edged higher on Monday, as investors looked ahead to a trading week due to feature key economic data and a potential U.S. government shutdown.
Shares of Britain’s GSK surged by over 3%, boosting the wider health care sector, on news that the drugmaker’s CEO Emma Walmsley will step down. Walmsley is due to be replaced by Luke Miels in January.
AstraZeneca’s stock price also ticked up after the U.K. pharmaceutical group said it planned to retain its London listing and headquarters, but would list its shares directly on the New York Stock Exchange, rather than through depositary receipts.
Technology and industrial goods and services sectors were also among the outperforming sectors.
Attention is turning to the unveiling of September’s nonfarm payrolls report on Friday, which could provide a glimpse into the state of the American labor market.
Supporting a cooling jobs picture has been a major focus for Federal Reserve policymakers. When the central bank slashed interest rates by 25 basis points earlier this month, officials widely suggested that a need to prioritize the slowing employment situation over signs of sticky inflation.
U.S. dollar dips.
The U.S. dollar weakened on Monday, as investors eyed the prospect of a federal government shutdown as well as a slate of fresh U.S. economic data points this week.
By 05:35 ET (09:35 GMT), the U.S. dollar index, which tracks the greenback against a basket of currency peers, had fallen by 0.2% to 97.92.
Attention is turning to the unveiling of September’s nonfarm payrolls report on Friday, which could provide a glimpse into the state of the American labor market.
Supporting a cooling jobs picture has been a major focus for Federal Reserve policymakers. When the central bank slashed interest rates by 25 basis points earlier this month, officials widely suggested that a need to prioritize the slowing employment situation over signs of sticky inflation. Economists are anticipating that the U.S. added 51,000 roles this month, compared to 22,000 in August. The unemployment rate, meanwhile, is tipped to equal August’s level of 4.3%.
London stocks rally.
London stocks rose on Monday, with healthcare shares leading broad-based gains, while investors focused on a potential U.S. government shutdown that could delay key economic data.
The benchmark FTSE 100 was up 0.6% at 09:36 GMT, while the domestically focused FTSE 250 rose 0.6%.
Healthcare stocks climbed 1%, with pharmaceutical giant GSK’s shares rising 2.3% following an announcement that CEO Emma Walmsley will step down in December and be replaced by company insider Luke Miels.
“It seems that investors believe having a new man at the helm, someone who understands the business inside and out, could deliver fresh impetus to a business which is now on the right foot,” said Danni Hewson, head of financial analysis at AJ Bell.
Meanwhile, heavyweight AstraZeneca rose 1% after revealing plans to directly list on the New York Stock Exchange, though the company emphasized it will maintain its London listing and headquarters.
Precious metal miners advanced 2.2% as gold prices continued to hit new records. The rally in gold has been fueled by increasing expectations of U.S. rate cuts and growing concerns about a potential government shutdown, which has enhanced demand for safe-haven assets.
President Donald Trump is scheduled to meet with congressional Democratic and Republican leadership later in the day to discuss extending government funding.
Without an agreement, a shutdown would commence on Wednesday, potentially disrupting the release of key economic data, including the closely watched September non-farm payrolls report later this week.
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