European Stocks Muted Ahead of Key US Jobs Data
European stocks were muted on Friday as investors awaited key US jobs data that could provide clues on the health of the world’s largest economy. The Stoxx Europe 600 Index was little changed, while the euro was steady against the dollar.
Aurubis Sinks
Aurubis AG, Europe’s largest copper producer, dropped as much as 6.2% after reporting a decline in second-quarter earnings. The company said its earnings before interest, taxes, depreciation and amortization fell to $167 million from $177 million a year earlier.
US Jobs Data
Investors are looking ahead to the US jobs report due later in the day, which is expected to show the economy added 1.4 million jobs in August. The report could provide clues on the pace of the recovery from the coronavirus pandemic.
Market Movers
In the Stoxx 600, oil and gas stocks were the biggest gainers, while banks and insurers were the biggest decliners. Among individual stocks, ABN Amro Group NV rose as much as 4.3% after the Dutch lender reported a jump in second-quarter profit.
Volatility
The Stoxx 600 has been trading in a tight range in recent weeks as investors weigh the prospects of a recovery in the global economy against the risk of a second wave of coronavirus infections. The gauge has been stuck in a range of about 1.5% since the start of August.
European Central Bank
The European Central Bank is expected to keep its policy unchanged at its meeting next week. The ECB has already taken unprecedented steps to support the economy, including cutting interest rates to record lows and launching a massive bond-buying program.
European Economic Outlook
The outlook for the European economy remains uncertain. The region’s economy is expected to contract by 8.3% this year, according to the European Commission. The euro area’s unemployment rate is expected to rise to 8.7% this year, from 7.4% in 2019.
Brexit Negotiations
The UK and the European Union are continuing their negotiations on a post-Brexit trade deal. The two sides have until the end of the year to reach an agreement, or the UK will leave the EU’s single market and customs union without a deal.
Currency Markets
In currency markets, the euro was little changed against the dollar at 1.1830. The pound was also steady at 1.3115. The yen was weaker against the dollar, trading at 105.17.
Global Markets
In Asia, stocks were mixed. Japan’s Nikkei 225 Index rose 0.3%, while Hong Kong’s Hang Seng Index fell 0.2%. In the US, futures pointed to a higher open.
Outlook
The outlook for European stocks remains uncertain as investors await the US jobs report and the outcome of Brexit negotiations. The ECB is expected to keep its policy unchanged at its meeting next week, but the outlook for the European economy remains uncertain.