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Frankfurt - European stocks were little changed as investors speculated on the health of the US economy and the implications for interest rates of today’s nonfarm payroll data.
The Stoxx Europe 600 Index added 0.1% to 343.86 at 8:22 a.m. in London. A measure of banks posted the best performance of the gauge’s 19 industry groups, extending its four-day gain to 5.1%. Commodity producers fell the most, led by Anglo American.
Equities erased most of their gains late yesterday after an unexpected contraction in US manufacturing damped sentiment that had been buoyed by better-than-expected UK and Chinese data.
Investors will today turn their attention to payroll data from the world’s biggest economy for clues on the likely pace of Federal Reserve monetary tightening.
Jobs growth slowed to 180 000 last month from 255 000 in July, according to a Bloomberg survey.
Fed Vice chairperson Stanley Fischer said this week that economic reports would determine the trajectory of interest-rate increases. He previously highlighted the jobs release as being significant.
Following the disappointing factory data, traders pared bets on a September hike, with futures prices indicating a 34% chance of movement this month, down from 42% at the end of last week. Odds for a December increase are about 60%.
Among stocks moving on corporate news today, Rocket Internet SE tumbled 9.3% after the German start-up investor announced a first-half loss.
Adidas slipped 1.6% after Callaway Golf Company chief executive officer said the firm will not bid for the German company’s golf division.
McCarthy & Stone plummeted 12% after saying that UK’s referendum and the Bank of England’s subsequent changes to monetary policy could affect ability to reach its target for annual volume growth.
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