European Stocks Hit Record as Soft US Jobs Data Lifts Sentiment

European equities rallied to a record close, led by strong gains in Germany, after softer US jobs data eased concerns about higher interest rates. The pan-European Stoxx Europe 600 rose about 1.4% to an all-time high, while Germany's DAX jumped roughly 2.2% and the UK's FTSE 100 and France's CAC 40 each added around 1.7%. Investors rotated into healthcare, financials and defence shares, sectors seen as beneficiaries of the shifting outlook, while technology was the main laggard as a global semiconductor selloff weighed on chip-related names. Among the biggest movers, Germany's Bayer surged nearly 9% after steps to reduce its exposure to long-running Roundup weedkiller litigation, while pharmaceutical and defence stocks including AstraZeneca and Saab also posted sharp gains. The weaker US employment report reduced pressure from rate-hike expectations, supporting risk appetite across the region. Analysts noted the rally's breadth, with the advance spreading beyond technology, but cautioned that the sustainability of the rotation would depend on whether corporate earnings and economic data continue to cooperate in the months ahead.