Europe shares close lower as U.S. economic data in focus

The pan-European STOXX 600 index ended down 0.6% at 580.67 points

European shares closed lower on Thursday, as investors shifted their focus to crucial U.S. economic data following the end of the nation’s longest government shutdown, while Siemens fell after an underwhelming earnings report.

The pan-European STOXX 600 index ended down 0.6% at 580.67 points. It had logged an intraday record high earlier in the day. Germany’s DAX dipped 1.4%, while Britain’s FTSE 100 shed 1.1%.

Basically, it’s a fact of buy the rumour, sell the fact. Now that we’ve got the government shutdown, the longest in the U.S.’s history, finished, people are taking profit, said Axel Rudolph, senior technical analyst at IG Group.

September’s jobs report will likely be the first to be released in the days to come. After private surveys signalled cracks in the labour market, investors expect an imminent U.S. central bank interest rate cut.

There is the possibility some of the data won’t be released at all, said Kyle Rodda, senior financial market analyst at Capital.com.

That could extend the uncertainty beyond the resumption of government services, with the markets and policymakers, if not flying blind, then at least blinkered going into the next Fed decision, Rodda said.

Optimism over the imminent end of the shutdown had helped the STOXX index hit record highs recently.

European industrial stocks lost 1.8% with Siemens dropping 9.4% as a hike in its medium-term sales growth forecast failed to allay investors amid profit-taking and disappointment about next year’s profit outlook. It unveiled plans to reduce its stake in Siemens Healthineers.

The financial services sector dropped 2.3%. Investment company 3i Group declined 17.4%, logging its worst day ever, after it said it was cautious in deploying capital into new investment.

Tech stocks fell 0.5%, while energy stocks lost 1.2%.