Europe Markets: European stocks and U.S. equity futures tread water ahead of jobs data


European stocks traded mostly flat on Friday, as investors took to the sidelines ahead of an important update on U.S. jobs. Airlines and travel companies fell after the U.K. government removed Portugal from its list of safe travel destinations.

The Stoxx Europe 600 index

inched up 0.1% to 451.33, with the German DAX

also up 0.1% and the French CAC 40

and the FTSE 100 index

down 0.1%.

Asian stocks were mixed, while U.S. stock futures



stalled ahead of payrolls data and on the heels of a weaker close. Led by technology names, equities slipped on Thursday after strong private-sector hiring and weekly jobless claims data, and the Federal Reserve’s decision to start selling the corporate bonds it bought last year amid the pandemic.

Data due later is expected to show 671,000 jobs were added in May, from a disappointing 266,000 gain in April, according to economists surveyed by Dow Jones Newswires and The Wall Street Journal. But a strong report could trigger market volatility, analysts warned.

“The welcome return to economic growth continues to be tempered by fears of rising prices, as elements of supply and demand remain out of kilter,” Richard Hunter, head of markets at Interactive Investor, told clients in a note.

“A particularly strong reading would reignite the debate on monetary policy. While the Federal Reserve continues to maintain its view of inflation as a passing phase, there are nonetheless suspicions that the voices for the tapering of Quantitative Easing – if not interest rates – are becoming louder,” said Hunter.

Banks were leading the declines in Europe, with shares of HSBC

Banco Santander


and UBS

all down 1%.

Airline and travel stocks were again under pressure after the U.K. government’s decision to remove Portugal from its quarantine-free travel list, citing concerns about coronavirus variants. The country was opened up for travel less than a month ago.

Speculation that the decision was coming hit travel-related shares on Thursday, and those stocks continue to slide on Friday. Shares of easyJet 

and International Consolidated Airlines 

fell around 1.5%, Ryanair 

 fell nearly 1.3%, Wizz Air

  was 2.7% lower and and Carnival

dropped 1.6%.

Shares of French media conglomerate Vivendi

were modestly lower. Hedge-fund billionaire William Ackman’s SPAC is poised for a deal for a 10% stake in Universal Music Group, a subsidiary of Vivendi, that would value the music business giant at around $40 billion, The Wall Street Journal reported, citing sources. That would be the largest SPAC transaction on record if it goes ahead.

Kelley Blue Book: This is the 3-row midsize SUV that costs the least over 5 years

Previous article

: Post pandemic global travel headaches continue as U.K. yanks Portugal from safe-destination list

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in News