Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Investing

European shares have worst day in a month as investors digest mixed US data

2024-09-06T072612Z_1_LYNXMPEK8508X_RTROPTP_4_EUROPE-STOCKS

Published : , on

By Shubham Batra and Lisa Pauline Mattackal

(Reuters) -European shares fell for a fifth straight session on Friday in their worst day since early August, after a widely anticipated U.S. jobs report offered mixed signals on the size of a potential Federal Reserve rate cut later this month.

The pan-European STOXX 600 index fell 1%. The index also snapped a four-week winning streak, losing 2.5% in its worst weekly performance since the week ending Aug. 2.

Data showed U.S. employment increased less than expected in August, potentially decreasing the chance that the Fed might opt for a 50-basis-point (bp) – rather than a 25-bp – rate cut this month, though the unemployment rate slipped.

Investors saw just a 23% chance of a 50 bp rate cut as of 1611 GMT, though pricing briefly rose above 51% after the data, according to the CME’s FedWatch tool.

“Over the next couple of weeks … markets (will) continue to trade choppy, and volatility (will) remain high because it is genuinely a coin flip in the markets as to what’s going to happen at that next Fed meeting,” said Michael Brown, senior research strategist at Pepperstone.

In Europe, all major country indexes fell around 1%, with Germany’s DAX index dropping 1.6% to a two-week low after data showed the country’s industrial production fell by 2.4% in July, compared with analysts’ prediction of a 0.3% drop.

The technology, basic materials, and energy sectors were the biggest drag on the STOXX 600, all falling over 2%. Chip stocks weighed on the tech sector, tracking declines in U.S. peers after tepid results from Broadcom.

Declines in oil and metal prices weighed on commodity stocks, while the rate-sensitive bank sector fell 1.8%. On a brighter note, the rate-sensitive real estate sector rose 0.6% to its highest since August 2022.

Also on the data front, euro zone GDP growth was revised to 0.2% for the second quarter from an earlier estimate of 0.3% growth.

Next week, the European Central Bank is widely expected to ease rates by 25 bps. European markets, however, are likely to take their cues from overseas, with U.S. inflation data expected to be the biggest mover.

“The Fed is absolutely the main driving force at the moment, with markets having already discounted that policy path for the ECB while you’ve got a very uncertain outlook for the Fed,” Brown said.

Among individual stocks, Volvo Cars dropped 5.7%. The Swedish automaker slashed its margin and revenue ambitions for a second time in a year on Thursday at its capital market day.

Poland’s InPost jumped 11.7% to the top of the STOXX 600, as it reported a 29% surge in second quarter earnings.

(Reporting by Shubham Batra in Bengaluru; Editing by Shounak Dasgupta and Mark Potter)

Jesse Pitts has been with the Global Banking & Finance Review since 2016, serving in various capacities, including Graphic Designer, Content Publisher, and Editorial Assistant. As the sole graphic designer for the company, Jesse plays a crucial role in shaping the visual identity of Global Banking & Finance Review. Additionally, Jesse manages the publishing of content across multiple platforms, including Global Banking & Finance Review, Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post