French Stocks Boost Europe as Investors Buy the Dip; UK Gains

French stocks outperformed on Thursday again, boosting the broader market as Morgan Stanley recommended investors to buy the country’s stocks ahead of the second round of elections.

The Stoxx 600 index was up 0.4% as of 8:19 a.m. in London, with banks leading the charge. UK’s index FTSE 100 was 0.5% higher ahead of the UK general election where the Labour Party is expected to win by a landslide. The CAC 40 gained 0.6%.

“UK elections should really be a non-issue for markets as, unless there’s a big surprise, it is already priced in,” said Diego Fernandez, chief investment officer at A&G Banco. “In France, markets seem to be quite complacent this week but we will be ready to buy in any weakness should Sunday’s results bring more declines.”

The gains also follow a strong close in US markets that drove the S&P 500 and Nasdaq 100 to new records. The market will remain closed today for Independence Day. 

Investors will now be closely watching Friday’s US jobs report, with economists anticipating a 190,000 gain in June non-farm payrolls, less than the previous month, potentially allowing the Fed to cut rates in September. 

The rally in European shares rally has stalled amid the political turmoil following the call of a snap election in France. The second round of voting is scheduled for Sunday, and uncertainty for investors is expected to remain. The main regional benchmark is about 2% away from record level.

In the UK, today’s election is widely expected to bring the Labour Party to power. Voting will end at 10 p.m. and the BBC, Sky and ITV will release the official Ipsos exit poll.

Among single stocks, Continental AG jumped as the German auto supplier expects slight growth in car production worldwide in the second quarter. Roche shares declined after the pharma giant’s antibody drug tiragolumab failed to meet the main goal in a clinical trial in lung cancer patients.

For more on equity markets:

You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance. To subscribe to a daily list of European analyst rating changes, click here.

With assistance from Michael Msika.

This article was generated from an automated news agency feed without modifications to text.