European Stocks Slump Ahead of US Jobs Report
European stocks resumed their slump on Friday, as investors braced for a key US jobs report that could provide clues on the health of the world’s largest economy.
The Stoxx Europe 600 Index fell 0.3%, after dropping 0.7% on Thursday. The benchmark has declined for four of the past five days, and is on track for its worst week since October.
Economic Data in Focus
Investors are closely watching economic data for signs of a recovery from the coronavirus pandemic. The US Labor Department is due to release its monthly jobs report later on Friday, which is expected to show the economy added about 50,000 jobs in December.
The report will be closely watched for signs of how the labor market is faring as the pandemic continues to weigh on the economy.
Tech Stocks Lead Declines
Tech stocks led the declines in Europe, with the Stoxx Europe 600 Technology Index falling 0.7%.
The sector has been under pressure this week, as investors have shifted their focus away from the companies that have benefited most from the pandemic, such as those in the technology and healthcare sectors, and towards those that are expected to benefit from a recovery in the global economy.
Travel and Leisure Stocks Suffer
Travel and leisure stocks were among the worst performers, with the Stoxx Europe 600 Travel & Leisure Index falling 1.2%.
The sector has been under pressure this week, as investors have become increasingly concerned about the impact of the pandemic on the global economy.
Oil Prices Fall
Oil prices fell on Friday, as investors remained concerned about the outlook for global demand.
Brent crude, the international benchmark, fell 0.7% to $51.81 a barrel. West Texas Intermediate, the US benchmark, fell 0.6% to $48.45 a barrel.
Currency Markets
In currency markets, the euro was little changed against the dollar, trading at $1.2185. The pound was also little changed, trading at $1.3587.
Central Bank Policy
Central banks around the world have been providing support to the global economy, with the European Central Bank and the Bank of England both announcing new stimulus measures this week.
The ECB announced a new bond-buying program on Thursday, while the Bank of England said it would expand its asset-purchase program by an additional £150 billion.
Outlook
The outlook for the global economy remains uncertain, as the pandemic continues to weigh on the global economy. Investors will be closely watching economic data for signs of a recovery, and will be looking to the US jobs report later on Friday for clues on the health of the world’s largest economy.