European Shares Rise After Opening Lower as Key U.S. Jobs Data Looms

Published 07/10/2022, 11:10
© Reuters
EUR/USD
-
UK100
-
XAU/USD
-
FCHI
-
DE40
-
CSGN
-
JDW
-
GC
-
LCO
-
CL
-
STOXX
-

By Scott Kanowsky 

Investing.com -- European stocks rose after opening slightly lower on Friday, as investors awaited the release of an all-important U.S. job market report that is expected to help determine the path forward for Federal Reserve monetary policy.

By 06:00 ET (10:00 GMT), the pan-European STOXX 600 edged up 0.27%, the DAX in Germany traded 0.12% in the green, the CAC 40 in France gained 0.24%, and the U.K.'s FTSE 100 was higher by 0.32%. The bourses are set to register weekly rises.

The moves followed muted trading volumes in Asia on account of a week-long holiday in China. But most indices in the region were on course to make gains over the week after they slumped to their worst monthly performance in September since the early days of the COVID-19 pandemic.

Wall Street indices provided a weak lead-in for equity markets worldwide, ending a whipsaw session lower on Thursday as rising yields weighed.

U.S. nonfarm payrolls data due later on Friday is expected to factor into the Fed's plans to hike rates. Continued signs of strength in the labor market may give the central bank enough space to keep raising borrowing costs over a longer period of time.

Traders are currently pricing in a nearly 73% chance that the Fed will raise rates by 75 basis points during its next meeting, according to CME's FedWatch tool. The central bank has already signaled that U.S. interest rates will end the year above 4%, pointing to more pressure on risk-driven assets.

Elsewhere, data showing a bigger-than-expected 1.3% slide in retail sales in Germany in August also dented sentiment in Europe.

In corporate news, Credit Suisse Group AG (SIX:CSGN) has offered to repurchase $3 billion worth of its own debt in a bid to solidify confidence in the embattled lender.

J D Wetherspoon PLC (LON:JDW) also narrowed its annual loss compared to the previous year despite surging labor and energy costs. Shares in the U.K. pub chain rose.

Elsewhere, oil prices gained as markets eyed the release of the nonfarm payroll numbers and are on track to deliver strong weekly gains after the OPEC+ oil group agreed to deeply slash output by two million barrels per day in the coming months.

London-traded Brent Oil Futures climbed 0.79% to $95.17 a barrel, while West Texas Intermediate crude futures increased by 0.81% to $89.17 per barrel. Prices have rallied for four straight sessions, recovering sharply from eight-month lows hit earlier as markets positioned for much tighter supply conditions this year.

Additionally, gold futures moved down by 0.02% to $1,720.40/oz, while EUR/USD exchanged hands at $0.9807.

 
 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.