Euro markets slide on payroll worries

6 Sep 2024 , 01:45 PM

European markets fell for the fifth straight day on Friday as investors remained cautious ahead of the critical U.S. jobs report, the penultimate such labour market survey before the Federal Reserve’s monetary policy decision on September 18.

The pan-European STOXX 600 index declined 0.4% around 0711 GMT. The index has fallen 3% this week, ending its four-week winning streak.

Germany’s DAX index plummeted 0.5% as statistics revealed that the country’s industrial production fell by 2.4% in July, compared to experts’ expectations of a 0.3% drop.

Energy stocks were the largest drag on the market, falling 0.8% as oil prices remained at 14-month lows.

All eyes will be on the U.S. nonfarm payrolls report at 1230 GMT, which is likely to reveal that the American economy added 160,000 jobs in August, up from 114,000 the previous month. The unemployment rate is expected to dip to 4.2% from 4.3%.

The eurozone’s revised GDP data for the second quarter is due at 0900 GMT.

Among stocks, Airbus fell 1% after Europe’s aviation safety agency ordered engine inspections on its A350-1000 jets following an engine fire on a Cathay Pacific flight this week.

France’s Elis SA fell 10.5% on reports that the workplace supplies provider approached Vestis, Aramark’s former uniform rentals unit, with an acquisition offer.

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