European markets are likely to open on a downbeat note this Friday amid ongoing concerns about economic growth, as investors look ahead to significant economic data releases from both the Eurozone and the United States.
Key stats for the day include Germany's industrial production and foreign trade figures, as well as U.K. house price data, which will likely influence market sentiment. Eurostat is scheduled to release revised GDP data for the Euro area, with the initial estimate indicating a 0.3% sequential growth for Q2.
In the United States, market participants are eagerly anticipating the monthly jobs report, which encompasses both public and private sector employment numbers, to gain better insight into future interest rate movements and economic health. Economists predict an increase of 160,000 jobs in August, following a 114,000-job rise in July. Furthermore, the unemployment rate is expected to slightly decrease to 4.2% from July's 4.3%, which marked its highest rate since October 2021.
The U.S. payroll data, alongside statements from Federal Reserve officials John Williams and Christopher Waller, might offer more clarity on the likelihood of a rate cut later this month.
Asian markets trading lower today reflects investor caution, exacerbated by mixed overnight U.S. economic data that stoked worries about American economic growth. The U.S. dollar hovered near its lowest point in a week against major currencies, while oil was set for its largest weekly decline in almost a year due to demand concerns and apparent ample supply. Gold prices edged higher and appeared on course for a weekly gain after reaching a near one-week high during the prior session.
U.S. stocks ended Thursday's session mixed. Private payrolls data showing the slowest growth rate since 2021 intensified fears of a cooling labor market. Conversely, weekly jobless claims fell, and activity in the key services sector increased for the second consecutive month, providing some relief from broader economic concerns. Consequently, the S&P 500 declined by 0.3% for the third straight session, the Dow Jones Industrial Average dropped 0.5%, whereas the Nasdaq Composite gained 0.3%, snapping a two-day losing streak.
On Thursday, European stocks closed lower for the fourth day in a row, driven by persistent growth-related anxieties. The pan-European STOXX 600 declined by 0.5%, with Germany's DAX finishing slightly lower. France’s CAC 40 decreased by 0.9%, and the U.K.’s FTSE 100 dipped 0.3%.
