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European stocks mostly lower in cautious trade; DAX down 0.58%

Published 10/07/2016, 03:45 AM
© Reuters.  European stocks move lower, U.S. data in focus
UK100
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FCHI
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DE40
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STOXX50
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HSBA
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BARC
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LLOY
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EZJ
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MKS
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NWG
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DBKGn
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CBKG
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BNPP
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SOGN
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BBVA
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TKAG
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RIO
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AAL
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BHPB
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ANTO
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ISP
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CRDI
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ESZ24
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1YMZ24
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NQZ24
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Investing.com - European stocks were mostly lower on Friday, as investors remained cautious ahead of a key U.S. employment report due later in the day, amid mounting expectations for a U.S. rate hike before the year end.

During European morning trade, the EURO STOXX 50 retreated 0.82%, France’s CAC 40 dropped 0.55%, while Germany’s DAX 30 declined 0.58%.

Market participants were awaiting the U.S. nonfarm payrolls report due later in the day for further indications on the strength of the job market, as the Federal Reserve has indicated that future interest rate decisions will be data-dependent.

Financial stocks were broadly higher, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) added 0.18% and 0.11%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) gained 0.10% and 1.02%.

Deutsche Bank was boosted following news the German lender plans to cut another 1,000 jobs.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) rose 0.05% and 0.47% respectively, while Spanish bank BBVA (MC:BBVA) advanced 0.18%.

Thyssenkrupp AG (DE:TKAG) was also on the upside, with shares climbing 0.60% following reports this week that approximately 8,000 Germany-based employees have been given assurances that current collective wage agreements and job guarantees would be upheld during the company’s restructuring.

Separately, analysts at Zachs Investment Research upgraded the stock’s rating from “hold” to “strong-buy”.

In London, commodity-heavy FTSE 100 gained 0.40%, boosted by sharp gains in the mining sector.

Shares in Antofagasta (LON:ANTO) jumped 1.77% and Rio Tinto (LON:RIO) rallied 1.96%, while BHP Billiton (LON:BLT) and Anglo American (LON:AAL) surged 2.83% and 2.87% respectively.

Financial stocks added to gains, as Barclays (LON:BARC) edged up 0.17% and Lloyds Banking (LON:LLOY) added 0.25%, while HSBC Holdings (LON:HSBA) advanced 1.08%. The Royal Bank of Scotland (LON:RBS) underperformed however, with shares shedding 0.22%.

Meanwhile, easyJet (LON:EZJ) was one of the worst performers on the index, as shares plummeted 3.21% after the airliner said on Thursday that it was preparing for a £90 million profit hit this year due to the plunge in the pound.

Marks and Spencer Group PLC (LON:MKS) was also on the downside, with shares tumbling 2.51% after analysts at Numis reduced their recommendation from “hold” to “reduce”.

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.29% fall, S&P 500 futures showed a 0.36% decline, while the Nasdaq 100 futures indicated a 0.32% slide.

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