European stock futures drop ahead of U.S. payrolls datawritten by Bella Palmer
The DAX futures contract in Germany traded 0.4% lower, CAC 40 futures in France dropped 0.6%, and the FTSE 100 futures contract in the U.K. fell 0.4%
European stock markets are expected to open marginally lower Friday, with investors cautious ahead of the release of the key U.S. monthly jobs report, which could guide future Federal Reserve monetary policy.
At 06:00 GMT, the DAX futures contract in Germany traded 0.4% lower, CAC 40 futures in France dropped 0.6%, and the FTSE 100 futures contract in the U.K. fell 0.4%.
The August U.S. jobs report is due for release at 12:30 GMT, and will be widely watched as it’s one of the last pieces of economic data the Fed will see before its September meeting, where it is set to raise its benchmark interest rate again.
Nonfarm payrolls are expected to have increased by 300,000 jobs last month after surging 528,000 in July, and the release comes shortly after Fed Chair Jerome Powell warned of the need to continue to tighten monetary policy to quell inflation even at the expense of rising unemployment.
The size of the interest rate hike the U.S. central bank will announce later this month is in doubt, but an increase would mark the 20th straight month of job growth, suggesting the labour market is coping with the aggressive rate hikes already instigated.
The European Central Bank is also expected to lift its interest rates next week, and with record-high inflation fast approaching double digits the question is whether the central bank will go for a 50-basis-point hike, as it did in July, or an even larger move.
Eurozone producer prices are due later in the session, and are expected to show a rise of 2.5% on the month in July, a hefty rise of 35.8% on the year.
In corporate news, Lufthansa will be in the spotlight Friday after pilots at the German airline went on strike, forcing the cancellation of hundreds of flights.
Oil prices bounced Friday, but were still on course for substantial losses this week on concerns China’s COVID-19 restrictions and slowing global growth will hit demand.
This article is for information purposes only.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.