EUROPE MARKETS: European Stocks Becalmed As Investors Await U.S. Jobs Report
February 05 2016 - 4:35AM
Dow Jones News
By Carla Mozee, MarketWatch
Euro sticking around $1.12
Stocks across Europe sought firm direction Friday, as investors
waited for the high-profile monthly U.S. jobs report and faced the
prospect of a losing week for European equities.
The Stoxx Europe 600 rose 0.1% to 329.05, but has been darting
in and out of positive territory throughout the session. For the
week, however, the index looked solidly in the red, as it is poised
to drop 3.6%. That would break two previous weeks of gains.
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
5.3%. 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
0.7%, but was still on track for a 3.5% weekly decline.
Near the bottom of the Stoxx 600 was ArcelorMittal SA (MT) (MT).
Shares dropped 6% as the world's largest steelmaker said it will
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)
Dollar and DAX: Investors will look for the closely watched U.S.
jobs report for January, due at 1:30 p.m. London time, or 8:30 a.m.
Eastern Time. Economists polled by MarketWatch expect nonfarm
payrolls to have risen by 180,000 last month, down from the sharp
gain of 292,000 in December.
Read: Why a January jobs slowdown may not be a bad sign
(http://www.marketwatch.com/story/why-a-january-jobs-slowdown-may-not-be-a-bad-sign-2016-02-04)
"It is hard to overstate just how important today's January
payrolls report is, with markets having re-priced [Federal Reserve]
rate prospects, to the extent that a March hike now has only a 10%
probability attached and a single hike by year-end is less than 50%
discounted," wrote Adam Cole, head of G10 FX strategy at RBC
Capital Markets, in a note.
Weaker-than-expected U.S. economic data this week prompted a
selloff in the U.S. dollar . That led to the euro on Thursday to
trade above $1.12 for the first time since late October. The shared
currency on Friday was buying $1.1196.
A stronger euro tends to pressure European exporters, and that
worrisome sentiment was expressed on Germany's DAX , which now it
faces a 4.1% weekly drop. The index on Friday swung between gains
and losses, most recently edging up 0.1% to 9,400.52.
In London, the FTSE 100 also seesawed
(http://www.marketwatch.com/story/uk-stocks-wobble-as-miners-lose-hold-on-gains-2016-02-05).
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(END) Dow Jones Newswires
February 05, 2016 05:20 ET (10:20 GMT)
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