Europe close: Stocks retreat despite stronger-than-expected US jobs report
By Alexander Bueso
Date: Friday 04 Feb 2022
(Sharecast News) - European shares hit the skids after a firm opening, with markets across the region sharply lower despite the release of a stronger-than-expected reading on the US jobs market.
"Wednesday's ADP report was a complete red herring, as today's US jobs report came in strong. But wages are rising too, which brings the inflation story back into play," said IG chief market analyst Chris Beauchamp.
"Try as they might, markets can never really escape this one central theme, which seems to hang over everything at present. Faced with this fresh sign of inflation markets have come under pressure again, and as this busy and volatile week draws to a close the sellers look to be in charge once again."
The pan-European Stoxx 600 index dropped by 1.38% on Friday despite better-than-expected results from Amazon overnight and firmer oil stocks.
Milan's FTSE Mibtel fell 1.79% to 26,603.59, alongside a 1.75% drop on the Frankfurt Dax to 15,099.56.
Investors were also eyeing the US non-farm payrolls report later in the day.
Oil stocks were higher, with the Stoxx 600 Oil&Gas subindex climbing 2.07%, driven by a rise in crude prices as freezing weather hit the US and posed a threat to supplies.
German factory orders rose much more than expected in December, with domestic demand driving growth, according to figures released on Friday by Destatis.
Orders were up 2.8% on the month following a revised 3.6% jump in November, beating expectations for a 0.5% increase.
In equity news, shares in French care home operator Orpea fell more than 12% after it emerged that sacked chief executive Yves le Masne sold stock worth almost €600,000 after being informed of allegations that residents were abused.
Le Masne was fired on Sunday, while French authorities have opened an investigation into the for-profit group, which operates 350 homes in France.
Shares in Assa Abloy, the world's biggest lockmaker, was up 7% as the company reported fourth-quarter operating earnings slightly above market forecasts and proposed raising its annual dividend.
Sanofi shares dipped after the French drugmaker posted upbeat quarterly numbers and said it still expected its Covid-19 vaccine to win approval in the first quarter and help drive further earnings growth this year.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN