Investing.com - European shares closed sharply lower Friday, as the U.S. nonfarm payroll report missed estimates resulting in the risk off trade.
At the close of European trade, the EURO STOXX 50 closed down 1.69%, France's CAC 40 plunged 1.90% and Germany’s DAX dropped 1.99%. Meanwhile, in the U.K. the FTSE 100 gave back 1.93%.
Igniting the risk off sentiment, U.S. nonfarm payrolls advanced less-than-expected last month, official data showed on Friday.
The U.S. Department of Labor reported non-farm payrolls climbed to a seasonally adjusted 115K, from 154K in the preceding month whose figure was revised up from 120K.
Economists had expected U.S. non-farm payrolls to rise 170K last month.
Adding to the equity bearish uncertainty, France and Greece will hold elections over the weekend.
French voters will decide on the final round of the countries presidential race and Greece will be voting on a new parliament.
Francois Hollande, the Socialist challenger for the French highest office, is the leading incumbent. He is calling for a re-negotiation of the budget pact with European leaders, saying it needs to place more of an emphasis on growth. He has rejected Sarkozy’s plan to increase sales taxes to fund lower payroll charges.
Meanwhile in Greece, neither of the two major political parties, New Democracy and Socialist Pasok is likely to win the majority.
On Thursday, in the U.K., a report showed that service sector activity expanded at a slower rate than expected in April, falling to the lowest level since November, but the report indicated that the overall outlook remained positive.
The services purchasing managers index fell to 53.3 in April, from 55.3 the previous month, worse than expectations for a decline to 54.6.
Wacker Chemie gave back 5.3% after stating it sees its 2012 earnings “markedly” below 2011.
Taylor Wimpey, The U.K.’s second largest homebuilder dropped 7.3% on weak U.K. housing data.
Stocks are following sharply lower in the U.S. with the Dow off 1.16%, the S&P 500 down 1.21% and the tech heavy Nasdaq off by 1.87%.
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At the close of European trade, the EURO STOXX 50 closed down 1.69%, France's CAC 40 plunged 1.90% and Germany’s DAX dropped 1.99%. Meanwhile, in the U.K. the FTSE 100 gave back 1.93%.
Igniting the risk off sentiment, U.S. nonfarm payrolls advanced less-than-expected last month, official data showed on Friday.
The U.S. Department of Labor reported non-farm payrolls climbed to a seasonally adjusted 115K, from 154K in the preceding month whose figure was revised up from 120K.
Economists had expected U.S. non-farm payrolls to rise 170K last month.
Adding to the equity bearish uncertainty, France and Greece will hold elections over the weekend.
French voters will decide on the final round of the countries presidential race and Greece will be voting on a new parliament.
Francois Hollande, the Socialist challenger for the French highest office, is the leading incumbent. He is calling for a re-negotiation of the budget pact with European leaders, saying it needs to place more of an emphasis on growth. He has rejected Sarkozy’s plan to increase sales taxes to fund lower payroll charges.
Meanwhile in Greece, neither of the two major political parties, New Democracy and Socialist Pasok is likely to win the majority.
On Thursday, in the U.K., a report showed that service sector activity expanded at a slower rate than expected in April, falling to the lowest level since November, but the report indicated that the overall outlook remained positive.
The services purchasing managers index fell to 53.3 in April, from 55.3 the previous month, worse than expectations for a decline to 54.6.
Wacker Chemie gave back 5.3% after stating it sees its 2012 earnings “markedly” below 2011.
Taylor Wimpey, The U.K.’s second largest homebuilder dropped 7.3% on weak U.K. housing data.
Stocks are following sharply lower in the U.S. with the Dow off 1.16%, the S&P 500 down 1.21% and the tech heavy Nasdaq off by 1.87%.
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