Investing.com - European stocks opened lower on Friday, after Standard & Poor’s cut France’s credit rating and as investors remained cautious ahead of the release of key U.S. employment data later in the day.
During European morning trade, the EURO STOXX 50 slid 0.77%, France’s CAC 40 declined 0.80%, while Germany’s DAX 30 retreated 0.63%.
France’s credit rating was lowered to AA from AA+ by S&P on Friday. The ratings company said slower growth will constrain the government’s ability to improve public finances.
Meanwhile, investors awaited the release of highly-anticipated U.S. employment data later in the trading session, after a strong report on U.S. economic growth on Thursday fuelled speculation the Federal Reserve could begin tapering its asset purchase program sooner-than-expected.
The Bureau of Economic Analysis said U.S. gross domestic product grew at a seasonally adjusted annual rate of 2.8% in the three months to September, beating expectations for growth of 2%. The U.S. economy grew by 2.5% in the previous quarter.
European equities had gained ground on Thursday, after European Central Bank President Mario Draghi confirmed that the central bank cut its benchmark interest rate to a record low 0.25% from 0.5% and said that euro zone borrowing costs will remain at their present or lower levels until conditions improve.
Financial stocks were mixed, as French lenders BNP Paribas and Societe Generale slid 0.47% and 1.34%, while Germany's Deutsche Bank added 0.14%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA retreated 0.89% and 1.06% respectively, while Italy's Unicredit climbed 0.47%.
Elsewhere, Richemont tumbled 1.61% after the owner of the Cartier brand said operating profit dropped to EUR1.37 billion in the six months through September, below analysts' expectations.
In London, commodity-heavy FTSE 100 slid 0.48%, weighed by losses in the mining sector.
Shares in HSBC Holdings declined 0.50% and Barclays retreated 0.87%, while Lloyds Banking and the Royal Bank of Scotland plummeted 1.18% and 1.43%.
Mining stocks added to losses, as Glencore Xstrata shed 0.76% and Rio Tinto declined 0.48%, while BHP Billiton slumped 0.43% and Randgold Resources plunged 3%.
On the upside, IAG surged 3.50% after the parent of British Airways said third-quarter earnings more than doubled and raised its full-year outlook.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.06% gain, S&P 500 futures signaled a 0.21% rise, while the Nasdaq 100 futures indicated a 0.25% increase.
Also Friday, official data showed that Germany's trade surplus widened to EUR18.8 billion in September, from EUR15.8 billion the previous month, which was revised up from EUR15.6 billion. Analysts had expected the trade surplus to narrow to EUR15.5 billion in September.
Later in the day, the University of Michigan was to release the preliminary reading of its consumer sentiment index. The U.S. was also to report government data on nonfarm payrolls and the unemployment rate.
During European morning trade, the EURO STOXX 50 slid 0.77%, France’s CAC 40 declined 0.80%, while Germany’s DAX 30 retreated 0.63%.
France’s credit rating was lowered to AA from AA+ by S&P on Friday. The ratings company said slower growth will constrain the government’s ability to improve public finances.
Meanwhile, investors awaited the release of highly-anticipated U.S. employment data later in the trading session, after a strong report on U.S. economic growth on Thursday fuelled speculation the Federal Reserve could begin tapering its asset purchase program sooner-than-expected.
The Bureau of Economic Analysis said U.S. gross domestic product grew at a seasonally adjusted annual rate of 2.8% in the three months to September, beating expectations for growth of 2%. The U.S. economy grew by 2.5% in the previous quarter.
European equities had gained ground on Thursday, after European Central Bank President Mario Draghi confirmed that the central bank cut its benchmark interest rate to a record low 0.25% from 0.5% and said that euro zone borrowing costs will remain at their present or lower levels until conditions improve.
Financial stocks were mixed, as French lenders BNP Paribas and Societe Generale slid 0.47% and 1.34%, while Germany's Deutsche Bank added 0.14%.
Among peripheral lenders, Spanish banks Banco Santander and BBVA retreated 0.89% and 1.06% respectively, while Italy's Unicredit climbed 0.47%.
Elsewhere, Richemont tumbled 1.61% after the owner of the Cartier brand said operating profit dropped to EUR1.37 billion in the six months through September, below analysts' expectations.
In London, commodity-heavy FTSE 100 slid 0.48%, weighed by losses in the mining sector.
Shares in HSBC Holdings declined 0.50% and Barclays retreated 0.87%, while Lloyds Banking and the Royal Bank of Scotland plummeted 1.18% and 1.43%.
Mining stocks added to losses, as Glencore Xstrata shed 0.76% and Rio Tinto declined 0.48%, while BHP Billiton slumped 0.43% and Randgold Resources plunged 3%.
On the upside, IAG surged 3.50% after the parent of British Airways said third-quarter earnings more than doubled and raised its full-year outlook.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.06% gain, S&P 500 futures signaled a 0.21% rise, while the Nasdaq 100 futures indicated a 0.25% increase.
Also Friday, official data showed that Germany's trade surplus widened to EUR18.8 billion in September, from EUR15.8 billion the previous month, which was revised up from EUR15.6 billion. Analysts had expected the trade surplus to narrow to EUR15.5 billion in September.
Later in the day, the University of Michigan was to release the preliminary reading of its consumer sentiment index. The U.S. was also to report government data on nonfarm payrolls and the unemployment rate.