European stocks rise in line with global sentiment after weak US jobs data

European stocks rose at the start of trading on Wednesday, keeping pace with global sentiment after weak US jobs data reinforced bets that the Federal Reserve would cut interest rates and ahead of an important interest rate decision from the European Central Bank this week.

By 0723 GMT, the European STOXX 600 index rose by about 0.5%, recovering after losses incurred in the previous session.

According to CNBC, Wall Street ended Tuesday’s transactions higher and Asian stocks recovered broadly after data showed that new American jobs fell in April, which indicates a slowdown in the labor market and strengthens bets on the central bank reducing interest rates.

But investors’ focus remained on an important interest rate decision from the European Central Bank tomorrow, Thursday, as it is expected to reduce lending costs by 25 basis points from a current record level of 4%.

All major European sector indices rose, led by the retail sector, which rose 1.7% after shares of Inditex, which owns the Zara brand, jumped 4.7% thanks to better-than-expected sales numbers in the first quarter results.

The Spanish IBEX index performed better than the rest of the region’s markets and rose 0.76%.

Markets are now awaiting the Eurozone Purchasing Managers’ Index data, which will be released today.