European stocks recover after ECB disappointment

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
June 7 (Reuters) - European stocks were in recovery mode on
Friday after a cautious message from the European Central Bank
hit investors' appetite for risk in the previous session, with
traders eyeing a U.S. jobs report and U.S. trade tussles with
Mexico for fresh direction.
Automakers climbed on a report that U.S. President Donald
Trump could delay the tariffs he had threatened to put on
Mexican goods as soon as this coming Monday, while French
drugmaker Sanofi SASY.PA gained on its appointment of a new
chief executive. The pan-regional STOXX 600 index .STOXX rose 0.6% by 0717
GMT, on track for its best weekly performance in two months.
France's CAC 40 .FCHI outperformed its euro-peers with a 0.9%,
helped by French pharma giant Sanofi SASY.PA .
Investors have largely favoured defensive sectors such as
utilities .SX6P and healthcare .SXDP in a week that has seen
stock markets globally gain despite uncertainties over trade and
monetary policy.
Signals from the U.S. Federal Reserve that interest rate
cuts are on the cards have been at the heart of those moves, and
monthly U.S. non-farm payrolls on Friday are likely to set the
tone for the next week.
In fresh evidence that the trade friction and uncertainty
over Britain's chaotic Brexit process were taking a toll, data
showed German industrial output fell more than expected in
April. However, the broader recovery in the region helped Germany's
DAX .GDAXI rise 0.6%.
Sanofi SASY.PA gained 3.1% after appointing Paul Hudson, a
top executive at its Swiss rival Novartis NOVN.S , as its chief
executive officer.
Carmakers and suppliers .SX7P gained 0.5% and the energy
sector .SXEP outperformed with oil majors Total TOTF.PA and
BP PLC BP.L up about 1% as crude prices jumped. O/R
The recovery in oil prices, however, took a toll on airline
stocks, with Air France AIRF.PA , EasyJet plc EZJ.L and
Lufthansa LHAG.DE down between 0.2% and 0.9%.