FX.co ★ European Stocks Cautious, US Jobs Awaited

European equities exhibited caution on Friday, with both the STOXX 50 and STOXX 600 indices fluctuating around the breakeven point. This uncertainty comes as investors keenly await the U.S. jobs report, a significant indicator that could influence expectations for a possible Federal Reserve rate cut later in the month. In economic developments, German factory orders experienced a decline of 2.9% in July, marking the sharpest decrease since January and underscoring ongoing challenges in industrial demand. On the corporate side, the technology sector saw positive movements, with ASML rising over 2% following Hexagon's agreement to sell its design and engineering business to Cadence. Additionally, Safran's shares increased by 1% amid reports of its potential divestment of a substantial portion of its aircraft interiors division. Orsted's stock climbed nearly 1%, notwithstanding a downward revision of its 2025 operating profit outlook, just prior to an important shareholder vote on a capital increase. Conversely, SAP, LVMH, Novo Nordisk, and Nestlé experienced declines, with their shares falling by 0.5%, 0.5%, 0.2%, and 0.4%, respectively. Overall, the week appears set to conclude with both benchmark indices remaining largely unchanged.