April 17, 2024

European Markets Edge Higher as the US Jobs Report Gets on the Way

Stock markets in Europe moved up as the markets opened on Friday. It serves as compensation for the hurts in the week. Investors are now waiting for the release of the jobs report from the United States as it will give clues about the economy’s health status.

Excitements in the European Market

The European-centered Stoxx 600 gained higher by 0.6% quite early in the day and auto stocks gained 1.6% to get ahead of the gains. Every sector of the European economy and top exchanges traded is higher.

Stocks in Europe had a negative beginning of the month as they traded low on Thursday. The blue-chip company index in Europe closed Thursday with a 1.8% deficit. Note that the index ended the month of August in the negative zone too.

The global stock market has been on the edge since last Friday following the hawkish statements that proceeded from the Chairman of the Federal Reserve, Jerome Powell, as well as other top executives of the Reserve.

The expected job report for Friday is set to give major clues into what is likely to happen at the next Federal Open Market Committee meeting where a decision will be made on interest rates. Economists are saying that a total of 318,000 new jobs got added to the American economy last month. It is less than the 528,000 jobs that were added in the month of July.

Meanwhile, as reported by Dow Jones, unemployment is speculated to still be maintained at 3.5%. 

Recession Might Still Come

The possibility of recession remains palpable in Europe and the United Kingdom. Investors are, therefore, dealing with more downward pressure in the economy. There are increasing cases of energy shortage as a result of the Russian counter sanction, which, in turn, increases the cost of living throughout Europe and the UK.

However, Asia-Pacific stock markets saw a mixed trading session on Friday while investors there also expect to see the report coming out of the United States. Stock futures in the US witnessed fractional lows following the S&P and Dow Jones break away from their initial losing streak seen over four days prior. That helped them end Thursday’s session on a positive note. 

With regard to data in Europe, the Eurozone’s July producer price is expected to roll in by 10 am London time.  

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