(MENAFN– ecpulse)
European shares began Friday’s trading session in mixed movement as investors await the release of U.S. non-farm payrolls data for clues on whether the economy is really strong enough to warrant an easing of equity-friendly stimulus.
- STOXX Europe 600 gained 0.25 percent or 0.75 points to 283.98
- Euro Stoxx 50 fell 0.07 percent or 1.94 points to 2,810.58
Sending stocks flying on Thursday, Europe’s key central banks, the ECB and BoE both indicated there were no plans to reduce monetary stimulus.
ECB’s President Mario Draghi said at a press conference Thursday that Eurozone interest rates would remain low for an extended period of time, assuring that the bank is nowhere near exiting the loose monetary policy.
The comments offered reassurance to equity markets, already spooked in recent weeks by signs that the U.S. Federal Reserve is moving closer to scaling back its massive stimulus.
Meanwhile, the Bank of England also decided in its policy meeting on Thursday to keep both interest rate and asset purchases on hold on signs of progress from the economy.
- British FTSE 100 inched 0.04% higher to 6,684.50
- France`s CAC 40 fell 0.04% to 4,041.13
- German DAX edged 0.06% up to 8,415.52
Markets are expected to remain thin with the U.S. investors trading on the sidelines ahead of the all-important nonfarm payroll data will be released. The nonfarm payrolls data will give investors a better idea of when the Federal Reserve will begin tapering its $85 billion monthly bond-buying stimulus.
Both jobless claims and private-sector jobs data beat estimates earlier in the week, fueling optimism about the coming nonfarm payrolls report. U.S. Labor Department said on Thursday that initial jobless claims fell to a five-year low last week, while a reading on manufacturing activity expanded in July at the fastest pace in 13 months.
Analysts expects nonfarm payroll report to show employers added a net 185,000 workers in July, after hiring 195,000 in the previous month, according to the median estimate in a Bloomberg survey. Economists also predicted that the unemployment rate dropped to 7.5 percent.
On domestic corporate news, the Royal Bank of Scotland Group Plc, Britain’s biggest publicly owned lender, announces Ross McEwan as Stephen Hester`s successor as the new boss of Royal Bank of Scotland. The announcement came as RBS announced pre-tax profits of £1.4 billion in the first half of the year from a loss of £1.7 billion a year earlier.
- As of 04:08 ET, Royal Bank of Scotland Group PLC share declined 5.49% to 315.200 pound
Axa SA (CS), Europe’s second-largest insurer, said first-half net income fell 3 percent to €2.47 billion down from €2.54 billion in the previous year, however, beating the €2.43 billion average estimate by analysts.
- As of 04:13 ET, AXA SA share rose 2.30% to 17.1400 euro
Deutsche Lufthansa AG (LHA), Europe’s second-largest airline, said second-quarter operating profit rose to €438 million from €269 million a year earlier, while operating profit fell 27 percent to €431 million. Sales were little changed at €7.89 billion.
- As of 04:14 ET, Deutsche Lufthansa AG declined 4.27% to 14.810 euro
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