Stock price information reflected in the Euronext NV stock exchange window in Paris, France, on Monday, March 13, 2023.
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LONDON – European stocks ended lower on Friday as investors digested the latest U.S. jobs data and the European Central Bank’s latest interest rate comments.
The Stoxx 600 temporarily closed down 0.16%. All major exchanges and nearly all sectors posted losses, with utilities down 1% and healthcare stocks up 0.5%.
The U.S. economy added more jobs than expected in May, with nonfarm payrolls rising to 272,000 from 165,000 in April, well above the Dow Jones consensus estimate of 190,000. After the news was announced, U.S. stocks rose and fell. S&P 500 Index As the Nasdaq falls, it hits new highs.
The latest data from the Bundesbank shows that Germany’s economic growth this year is slightly lower than expected show Friday. Europe’s largest economy is now expected to grow 0.3%, down from a previous forecast of 0.4%, while inflation is likely to rise slightly.
The pan-European benchmark closed at 524.75 points on Thursday, just above the record close set on May 15, according to LSEG data.
The move follows the European Central Bank’s decision to cut interest rates for the first time since 2019, a widely expected move despite lingering inflation concerns. The main bank interest rates in the 20 euro zone countries dropped from a record 4% to 3.75%.
Thursday is also an important day for politics in the region, as Europe-wide elections take place. Exit polls in the Netherlands have shown a narrow victory for the country’s left-wing parties, with the Labor/Green Left combination picking up eight seats.
It is followed by the anti-immigration party led by Geert Wilders, which looks set to win seven seats. It marks a complete turnaround for the PVV, which failed to win any seats in the last EU elections despite winning last year’s national election.
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