European Shares Rebound Ahead Of US Jobs Data

By | February 5, 2017


(RTTNews.com) – European stocks were mostly higher on Friday, as the dollar gained ground after the Bank of Japan’s bond-buying operations and China’s central bank raised short-term interest rates to help deflate asset bubbles and reduce long-term financial risks.

The day’s economic reports proved a mixed bag, with Eurozone retail sales falling unexpectedly in December on food and auto fuel sales and service sector growth in the U.K. easing more than expected at the start of the year amid the slower output growth and higher costs, while the final Markit Eurozone PMI Composite Output Index came in at 54.4 in January, unchanged from December but above the flash estimate of 54.3.

The U.S. Labor Department’s closely-watched jobs report will be out later today, with economists expecting employment to increase by 175,000 jobs in January after an increase of 156,000 jobs in December. The unemployment rate is expected to hold at 4.7 percent.

The German DAX was moving up 0.2 percent, France’s CAC 40 index was gaining 0.7 percent and the U.K.’s FTSE 100 was up 0.4 percent.

Banks traded mostly higher after reports that U.S. President Donald Trump plans to sign an executive order later today to water down the 2010 Dodd-Frank financial regulatory framework put into effect in response to the 2008 financial crisis. Deutsche Bank, BNP Paribas, Lloyds Banking Group, Barclays and The Royal Bank of Scotland climbed 1-2 percent.

Intesa Sanpaolo rose 1 percent as the retail bank denied it was mulling an all-share offer for insurer Generali.

Syngenta shares were marginally higher on a report that EU regulators are likely to clear its $ 43 deal with ChemChina.

Sweden’sSkanska rallied 5 percent on reporting a rise in Q4 profit, helped by stronger-than-expected performance at all its property development businesses.

ITV shares rallied 2 percent in London on a brokerage upgrade.

Miners Anglo American, Antofagasta, BHP Billiton and Glencore fell 3-4 percent after a private gauge of Chinese manufacturing activity missed forecasts in January and the country’s central bank raised short-term interest rates, in a further sign of policy tightening.

Spanish lender Banco Popular lost 6 percent after reporting a massive annual loss, hit by extraordinary provisions and additional charges to clean up its balance sheet.

German retail giant Metro fell 3 percent after its fiscal first-quarter profit fell 64 percent to 200 million euros, hurt by currency fluctuations.

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