Stocks open lower ahead of jobs
LONDON – European stocks opened lower on Friday as investors waited for key jobs data and continued to digest the more hawkish tone from the US Federal Reserve.
The pan-European Stoxx 600 traded down 0.4% at 9am London time shortly after stock exchanges across the continent opened.
Chemicals, food and beverages, and telecommunications were among the worst performing sectors at the start of trade. Basic resources, on the other hand, have been the main winners.
When it comes to individual stocks, ST Micro was among the top performers, up nearly 3%, after posting higher-than-expected sales in the fourth quarter.
Deutsche Bank also traded higher on Friday after positive statements that the bank is on track to meet its key profit targets, Reuters reported.
In addition, Air France – KLM will have to raise new capital in 2022 between 1 and 2 billion euros (1.13 billion and 2.26 billion dollars), reported Les Echos.
The minutes of the December Fed meeting on Thursday revealed a hawkish position within the central bank. Officials said they were ready not only to raise rates and cut bond purchases, but also to discuss declining holdings of treasury bills and mortgage-backed securities.
The news sparked a massive sell-off in many markets around the world.
Investors will now be watching closely for new US jobs data, due at 8:30 a.m.ET / 1:30 p.m. GMT.
Economists estimated that the US economy created 422,000 jobs in December, according to data compiled by Dow Jones. The unemployment rate, due at the same time, is expected to stand at 4.1%.
Back in Europe, investors collect new business data from Germany.
Germany’s trade surplus fell to its lowest level in November since 2011, according to Reuters. In addition, industrial production also fell 0.2% month-on-month.
“Supply chain friction keeps German industry in a bind. Only exports send glimmers of hope. However, without production, the recovery in exports will also be short-lived,” said Carsten Brzeski, global manager of the macro at ING, in a note. .
There will also be flash inflation figures for the euro zone in December and new data on consumer confidence.
On the political front, the Minister of Foreign Affairs of the North Atlantic Treaty Organization (NATO) is meeting virtually on Friday to discuss the formation of Russian troops near Ukraine. Their meeting precedes high-level talks between Russia, the United States and NATO next week.
Did you like this article?
For exclusive stock picks, investment ideas and CNBC’s global live stream
Register for CNBC Pro
Start your free trial now