LONDON – European stocks ended lower on Friday afternoon, giving up early gains after a weaker-than-expected U.S. jobs report clouded global sentiment.
Pan-European Stoke 600 It provisionally closed down 1.15%, with losses on all major exchanges and almost all sectors. Technology stocks and mining stocks were the biggest decliners, falling 2.39% and 2.41% respectively. Healthcare stocks were the rare outlier, rising just 0.02%.
The benchmark ended the week down 2.5%, its biggest weekly loss since the sell-off in early August.
Wall Street fell after the August jobs report showed payrolls rose by 142,000, below the 161,000 forecast by analysts polled by Dow Jones. The unemployment rate fell as expected, from 4.3% to 4.2%.
U.S. stocks fell in early trading, with the S&P 500 down 1.4%, its worst week since April. The Nasdaq also fell 2.2%.
A slew of data from the U.S. this week has been weaker than expected, including manufacturing surveys, employment opportunities and private payrolls, fueling calls for the Fed to cut interest rates by 50 basis points rather than 25 basis points at its September 18 meeting. expectations. CME Group’s FedWatch tool has a near-50% chance of an eventual 50 basis point rate cut, up from levels before the latest release.
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In Europe, Volvo Cars fell to its lowest level since January. The Swedish carmaker said on Thursday it would scale back its medium-term profit margin and revenue targets, as well as its target to sell all electric and plug-in hybrid vehicles in 2023.
Investors were also concerned about news that the European Union Aviation Safety Agency had ordered inspections of the aircraft. rolls royce Manufactures engines for the Airbus A350-1000 aircraft and is used by many airlines. Previously, a Cathay Pacific A350 flight from Hong Kong to Zurich was forced to land due to a fire in the fuel system, which triggered a fleet-wide inspection and the replacement of numerous engine parts.
Next week, UK employment and wage data and economic growth data will be released, and the European Central Bank’s next monetary policy meeting will be held after the summer vacation.
The European Central Bank is widely expected to resume rate cuts after pausing in July.
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