Europe open: Stocks fall as investors eye payrolls
European stocks fell in early trade as next week’s US presidential election continued to weigh on investors’ minds and ahead of the release of the latest nonfarm payrolls report later in the day.
At 0850 GMT, the benchmark Stoxx Europe 600 index was down 0.9%, Germany’s DAX was off 0.8% and France’s CAC 40 was 0.5% lower.
Meanwhile, oil prices retreated, with West Texas Intermediate down 0.3% to $44.51 a barrel and Brent crude down 0.4% to $46.17.
Accendo Markets analysts Mike van Dulken and Henry Croft said: “In focus today on the data front will be US Non-Farm Payrolls, given the US Fed having said that the case for a rate rise has continues to strengthen, but that it would like to see further evidence. Could today’s jobs report take us a step closer to a December rate hike, like last year?
“An NFP print of 100-200K (consensus 175K) will likely be taken as rate rise positive, especially if unemployment drops back to its summer lows of 4.9%. As always, with inflation as the other half of the Fed’s dual mandate keep an eye on any improvement in earnings that would be supportive.”
In corporate news, Commerzbank declined after saying it swung to a net loss in the third quarter.
British Airways and Iberia parent International Consolidated Airlines Group flew lower after it cut its target for average annual earnings before interest, taxes depreciation, amortisation and rental costs to around €5.3bn from 5.6bn previously.
EasyJet was also in the red after the budget airline said passenger numbers rose last month, but the load factor dropped. Passenger numbers were up 6.9% from last October to just over 6.84m, but the load factor – which gauges how full the planes are – fell to 90.2% from 93.3%.
On the upside, LafargeHolcim was in the black despite reporting lower revenue than expected for the third quarter, as it said it was on track to meet full-year targets.
Paddy Power rallied after lifting its full-year profit forecast and posting a rise in core earnings for the three months to the end of September.
Richemont shares gained ground as the Cartier maker posted weaker-than-expected profits for the six months to the end of September and announced that its chief executive and chief financial officer will step down next year.
The nonfarm payrolls report and unemployment rate are at 1230 GMT, along with US trade balance.