Strength in the US jobs markets leads to optimism global economy is improving

Strength in the U.S. jobs market bolstered optimism that the global economy is improving and speculation mounted that the centrist candidate will win France’s presidential election.

As the European earnings season nears the halfway mark, more than 80 percent of companies have beaten analyst expectations for revenues, showing that a recovery in demand is driving sales.

Also supporting the region's stocks were signs that centrist Emmanuel Macron is set for victory in France's presidential election on Sunday, and a survey showing euro zone businesses started the second quarter by turning out their best performance in six years. The Stoxx 600 is up 1.9 percent this week. Commodity producers in the Stoxx 600 jumped 2.6 percent, halting their longest stretch of declines in more than a month.

Energy shares advanced as oil rebounded, while mining shares jumped the most in seven weeks as metal prices climbed. Oil rebounded after earlier losses that took it below $44 a barrel. The decline in crude prices in the past month helped turn energy shares into the worst performers among Stoxx 600 groups this year.

Following the strong U.S. payrolls data, traders are pricing in a 100 percent chance the Fed will raise interest rates in June, Fed fund futures show. From Monday through Friday, the S&P 500 rose 0.6 percent to 2,399.29, led by gains of more than 1 percent in technology and financial shares. The index is up 7.2 percent in 2017 and 12 percent since Election Day. The latest jobs report did little to alter views that the Fed is poised to raise interest rates next month, padding the dollar’s gain this week.

The MSCI Asia Pacific excluding Japan Index has declined 0.6 percent this week. A gauge of energy companies was set to drop the most in more than four months as Woodside Petroleum Ltd. slid 2.7 percent in Sydney, leading losses.