European markets open lower as investors await U.S. payrolls data

Sam Meredith

European markets opened lower on Friday as investors closely monitored news from China over its zero-Covid policy and looked ahead to U.S. non-farm payrolls data.

European markets

TICKER	COMPANY	PRICE	CHANGE	%CHANGE
.FTSE	FTSE 100	7530.09	-28.4	-0.38
.GDAXI	DAX	14514.65	24.35	0.17
.FCHI	CAC 40 Index	6733.06	-20.91	-0.31
.FTMIB	FTSE MIB	24632.12	-53.55	-0.22
.IBEX	IBEX 35 Idx	8388.2	-19.7	-0.23

The pan-European Stoxx 600 fell 0.25% and sectors were a mixed bag in early trade. Oil and gas led losses, down 1.8%, as mining stocks fell 0.8%. Retail, media and travel stocks all added around 0.5%.

It comes shortly after the European Union tentatively agreed to a $60 barrel price cap on Russian seaborne oil, according to a document seen by Reuters. The price cap, an idea proposed by the Group of Seven, still requires approval from all 27 EU governments in a written procedure on Friday.

Data releases in Europe include German import and export data and producer prices for the euro zone.

The Stoxx 600 closed down 0.1% in the previous session.

Markets in Asia-Pacific were lower on Friday after China signaled a slight easing of its stringent Covid restrictions. Stocks in Japan led losses, with the Nikkei 225 last seen 1.6% lower and the Topix falling 1.6%.

Stateside, S&P 500 futures were slightly lower as market participants looked ahead to the November jobs report.

Economic data including the Labor Department’s report on non-farm payrolls, the unemployment rate and hourly wages are due at 8:30 a.m. ET on Friday. Economists expect the economy to have added 200,000 jobs in November, according to Dow Jones. That would be a decrease from the 261,000 it added in October.

German trade falls more than forecast

German exports fell by 0.6% month on month in October, twice as much as expected by analysts polled by Reuters.

Imports were down 3.7%, greater than a forecast of a 0.4% decline.

German officials have said exports are likely to fall 2% next year thanks to slowing global growth, low business sentiment, and the ongoing challenges of inflation and supply chain hold-ups.

The country is widely forecast to be heading for a recession, though recent data showing its economy grew 0.4% quarter on quarter and 1.3% annually fueled hope it will be shallow.

— Jenni Reid

Stocks on the move: Just Eat up, Kinnevik down

Just Eat was the top performer among generally downbeat European stocks in early trade, gaining 3.7% after JPMorgan upgraded the stock from underweight to neutral.

A week ago, the company announced plans to reorganize operations, potentially leading to around 170 job cuts.

Meanwhile, Swedish investment firm Kinnevik shed 5.5% after being downgraded by Norwegian financial services group DNB, according to local media.

— Jenni Reid

European markets: Here are the opening calls

European markets are heading for a lower open Friday, as investors eye an EU-led cap on Russian oilprices and non-farm payrolls data from the U.S.

The U.K.’s FTSE 100 index is expected to open 11 points lower at 7,547, Germany’s DAX is seen down 15 points at 14,448, France’s CAC is forecast to open 15 points lower at 6,728 and Italy’s FTSE MIB is also seen falling by 98 points at 24,609, according to data from IG.

Data releases include German import and export data, producer prices for the euro zone and U.S. nonfarm payrolls, the latter due at 1.30 p.m. London time.

— Katrina Bishop

CNBC Pro: BlackRock unit says it’s time for a new portfolio playbook, and reveals how to position

BlackRock’s ETF division says the investing environment has fundamentally changed, which has “profound implications” for portfolios looking ahead.

In its 2023 investor guide, Blackrock’s iShares, one of the largest providers of exchange-traded-funds in the world, said the shift brings with it “profound implications for portfolio construction.”

— Weizhen Tan

CNBC Pro: Citi names 6 global stocks that capture both ‘defensive growth and value’

Citi says investors don’t need to give up entirely on growth by pivoting to a defensive portfolio of stocks ahead of a potential recession.

The investment bank named six global stocks which offer “low risk, quality and growth” combined.

— Ganesh Rao

Source : CNBC