European stock markets drop on Europe, US data
August 07 2015 09:18 PM
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After losing nearly 20% in the first three days of the trading week following a five-week closure, Greece’s ATHEX index finished 3.65% higher on Thursday and rose again by 1.45% yesterday.

AFP/London

Europe’s main stock markets edged down yesterday as investors digested disappointing data out of the eurozone, a mixed US jobs report and the likelihood of an imminent US interest rate rise.
London’s FTSE 100 index finished down 0.42% at 6,718.49 points compared with Thursday’s close.
In the eurozone, Frankfurt’s DAX 30 ended the day 0.81% lower at 11,490.83 points, while the CAC 40 in Paris dipped 0.72% to 5,154.75.
And after losing nearly 20% in the first three days of the trading week following a five-week closure, Greece’s ATHEX index finished 3.65% higher on Thursday and rose again by 1.45% yesterday.
The euro rose to $1.0957 from $1.0923 late in New York on Thursday.
“Disappointing French and German industrial production figures, posted before European markets started trading, have ensured a dominance of red on trading screens,” said Alastair McCaig, market analyst at IG trading group.
Yesterday’s trading was impacted by US jobs data for July, which showed the economy adding slightly fewer jobs than expected, with unemployment holding steady at 5.3%.
The overall US labour market, however, showed solid growth, making it likely that the Federal Reserve could raise interest rates as early as September, dealers said.
The contrasting numbers in the new US labour statistics showed a July jobs gain of 215,000 — a bit below the 229,000 projected by analysts, but accompanied by an upgraded estimate for June to 231,000 from 223,000.
US businesses have now added 13mn jobs over 65 months of growth — extending the longest streak on record.
“July’s US jobs report showed another healthy rise in payrolls and suggests that the Fed is still likely to begin raising interest rates in September,” said analyst Michael Pearce at Capital Economics.
Investors on Wall Street were also torn on the jobs report and rates outlook, with the Dow Jones Industrial Average down 0.64% at 17,307.74 points around mid-day in New York.
The broad-based S&P 500 dropped 0.61% to 2,070.79, while the tech-rich Nasdaq Composite Index fell 0.85% to 5,013.62.
Back in Europe, official data showed Germany’s industrial output fell 1.4% and exports from the continent’s top economy dropped by 1% in June from the previous month.
Many German companies are struggling with China’s slowdown and recent volatility over the Greek debt crisis, despite the benefits of a low euro, cheap oil and rock-bottom interest rates.
Asian stock markets ended mixed on Friday as investors awaited the US jobs figures and after the Bank of Japan held fire on a fresh round of stimulus.


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