EUROPE MARKETS: European Stocks Volatile After U.S. Jobs Data, With Weekly Loss On Deck
05 Fevereiro 2016 - 1:54PM
Dow Jones News
By Carla Mozee, MarketWatch
Euro pulls back from $1.12
Stocks across Europe were volatile Friday, as investors sifted
through the high-profile U.S. jobs report that resulted in the euro
losing ground against the U.S. dollar, but regional equities were
still looking at a loss for the week.
The Stoxx Europe 600 was recently off 1 point at 328.61 after
flipping between gains and losses in the wake of the January jobs
report from the world's largest economy. For the week, however, the
index looked solidly in the red, as it is poised to drop 3.8%. That
would break two previous weeks of gains.
In a release during Europe's trading day, the U.S. Labor
Department's employment report
(http://www.marketwatch.com/story/us-jobs-growth-slows-to-151000-as-jobless-rate-hits-eight-year-low-2016-02-05)
showed nonfarm payrolls rose by a less-than-anticipated 151,000
jobs. But the unemployment rate dropped to an eight-year low of
4.9% and average hourly wages surged 0.5% to $25.39 an hour.
The dollar perked up after the report, pushing the euro to an
intraday low of $1.1113, according to FactSet. Late Thursday, the
euro fetched $1.1211, crossing above the $1.12 for the first time
since October.
"An important and missing ingredient during 2015 was stronger
wage growth so today's upside wage surprise will be positive,"
Nawaz Ali, a London-based currency strategist at Western Union
Business Solutions, wrote in a note.
After the jobs data, "the market will want to know if the two
Fed meetings in March and April are still 'live' -- meaning
[Federal Reserve] Chair Yellen still sees a chance of a second US
rate hike," which would be positive for the dollar, said Ali. If
"current market expectations are right .. there won't be another
hike for a while yet," a negative for the greenback.
Dollar-sensitive commodities such as oil and gold fell as the dollar gained strength.
But most European oil and gas shares managed to hold gains
Friday, with Spanish oil producer Repsol SA (REPYY) and Tullow Oil
PLC (TLW.LN) up 3.4%.
Mining shares were mixed, with iron ore producer Rio Tinto PLC
(RIO) (RIO) (RIO) extending losses to 2.8%. Platinum producer Anglo
American PLC (AAL.LN) surged 9.3%.
The dollar, however, is still in line for a weekly loss after a
string of weaker-than-anticipated economic reports. A stronger euro
tends to pressure European exporters, and that worrisome sentiment
was expressed on Germany's DAX , which now it faces a 4% weekly
drop. The index on Friday swung between gains and losses, most
recently edging up 0.1% to 9,407.34.
In London, the FTSE 100 also seesawed
(http://www.marketwatch.com/story/uk-stocks-wobble-as-miners-lose-hold-on-gains-2016-02-05).
Movers: Banking shares have been the source of much of this
week's pain for the market after the release of financial updates,
although BNP Paribas SA (BNP.FR) shares bucked the losing trend
Friday and rose 3.5%. The French lender's fourth-quarter profit was
halved, hit by a write-down on its Italian bank. But revenue
increased 3% to 10.45 billion euros. Nomura analyst Jon Peace
described the results as "reassuringly in line" with expectations
(http://www.marketwatch.com/story/bnp-paribas-profit-halved-by-italian-write-down-2016-02-05-34851739).
BNP shares were at the top of France's CAC 40 . The index was up
0.2% at 4,237.45, but was still on track for a 4.1% weekly
decline.
Near the bottom of the Stoxx 600 was ArcelorMittal SA (MT) (MT).
Shares dropped 4.7% as the world's largest steelmaker said it would
issue $3 billion worth of shares
(http://www.marketwatch.com/story/arcelormittal-to-issue-3-billion-in-shares-2016-02-05)
to strengthen its balance sheet. The move is aimed to help the
company deal with falling steel prices and global oversupply.
Read:China lays out plan to reduce steel capacity
(http://www.marketwatch.com/story/china-lays-out-plan-to-reduce-steel-capacity-2016-02-04)
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(END) Dow Jones Newswires
February 05, 2016 10:39 ET (15:39 GMT)
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