Europe close: Stocks little changed following mixed US jobs report
By Alexander Bueso
Date: Friday 08 Mar 2024
(Sharecast News) - European markets were little changed as investors digested a somewhat mixed US jobs report.
The pan-European Stoxx 600 edged up 0.02% to reach 503.26 - a fresh high - but regional indices in France, Italy and Spain drifted lower.
Nevertheless, some analysts were rather upbeat following of the U.S. February non-farm payrolls report which showed a 275,000 person gain (consensus: 195,000), albeit large downwards revisions to previous months data.
Chris Beauchamp, chief market analyst at IG, told clients: "Today's jobs figure is perhaps one of those hoped-for 'Goldilocks' moments - just enough signs of weakness to spur hope of rate cuts, but also a solid headline jobs number to underline the overall strength of the US economy.
"Compared to the anaemic growth outlooks for the UK and the eurozone, it is not surprising to see US stocks in favour once more."
In other economic news, at least two top European Central Bank officials indicated that the first interest rate cut might arrive in June, whilst a third broached the possibility of a reduction in April.
German industrial output rose 1% in January, beating expectations of the 0.5% expected, while construction and manufacturing output also rose 2.7% and 1.1%, respectively.
In equity news, Shares in HelloFresh plummeted, after the food delivery service warned on profits for the second time and scrapped its mid-term targets.
The German firm said that based on trading in the first weeks of the current fiscal year, core earnings in 2024 were unlikely to match 2023's results.
Instead, it now expects adjusted earnings before interest, taxes, depreciation and amortisation to come in between €350m and €400m, well below analyst forecasts.
Shares in paper and packaging maker DS Smith gained after it agreed to be taken over by larger rival Mondi in a £5.1bn deal. Mondi shares fell on the news.
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