European stocks were lower at midday on Friday as investors took a cautious stance ahead of US non-farm payroll numbers.
The pan-European Stoxx 600 index was down 0.10%. Investors are watching the US employment data and any impact it could have on the timing and pace of the Federal Reserve’s tapering of stimulus.
“Investors are keeping their nerve ahead of the non-farm payrolls report, with both the S&P500 and the Nasdaq hitting fresh record closing highs,” said Richard Hunter, head of markets at Interactive Investor.
“The consensus is for 750000 jobs to have been added in August, as against the much better than expected number of 943000 reported in July.
“Such a figure would probably be enough to keep a lid on concerns of overheating, and would leave the level of employment around 5 million lower than the February 2020 peak.”
“Even so, a non-farms reading which confirms steady, rather than rapid economic expansion is likely to ease the pressure on the Federal Reserve to taper and at the same time vindicate its current views on the immediate outlook.”
The payrolls report is due out at 1330 BST, along with the unemployment rate and average earnings.
Meanwhile, in the euro zone, business activity held strong in August despite concerns over the Covid-19 delta variant and global supply chain woes.
IHS Markit’s final composite purchasing managers’ index fell to 59.0 last month, down from July’s 15-year high of 60.2 and short of the 59.5 reading in the PMIs “flash” estimate.
In equity markets, Berkeley Group edged higher despite saying it was experiencing construction cost inflation and “mindful of ongoing supply chain and labour market issues due to Brexit and the pandemic”. The housebuilder maintained full-year guidance of pre-tax profit at or above last year’s £518m for the 12 months to April 30, 2022.
AstraZeneca ticked up after it said its Ultomiris blood disorder treatment has been approved in the European Union for expanded use to include children and adolescents.
Investment group Ashmore fell 3% after its full-year results.
