The European stock markets erased initial gains and ended down on Friday (5), pressured by financial and energy actions, with cautious investors after creating data from the USA’s milder jobs than expected increased concerns about weaknesses in the US economy.
The Pan-European Stoxx 600 index fell by 0.16%to 549.21 points, heavily pressured by the power sector, with a low of 1.8%, which reflected lower oil prices due to increasing expectations of increased supply.
The growth of employment in the USA markedly weakened in August, confirming that the conditions of the labor market were weakening and consolidating the argument for an interest rate cut by the federal reserve this month.
“There are definitely signs of cracks, and that’s what is leaving the market nervous,” said Fiona Cincotta, senior market analyst at City Index.
“Initially, the focus was on federal reserve interest cut expectations, and this seems to have become concerns about what it means to the US economy if the Fed is really behind the curve.”
According to the CME’s Fedwatch tool, operators are widely waiting at least three sections in the US basic rate by the end of this year.
In Europe, the regional banks sector was under pressure, with a drop of 1.3%. Banks will usually retreat from the hope of cuts, as lower loan costs compress the net margins of interest, reaching their profits and reducing demand for loans.
The insurance sector fell 0.6%, while the financial services lost 0.3%.
The real estate sector, which is more sensitive to interest, rose 1.6%, limiting the general decline of the Stoxx 600, which, after Friday’s movements, ended the week with light losses.
The energy sector was the one that fell the most in the week, with a fall of 3.2%, while health and media were still the ones that earned the most, up 1.2% each in the week.
In London, the Financial Times rate retreated 0.09%, to 9,208.21 points.
In Frankfurt, the DAX index fell 0.73%to 23,596.98 points.
In Paris, the CAC-40 index lost 0.31%to 7,674.78 points.
In Milan, the FTSE/MIB index had a devaluation of 0.91%, to 41,607.81 points.
In Madrid, the IBEX-35 index recorded a low of 0.45%to 14,850.90 points.
In Lisbon, the PSI20 index devalued 0.58%to 7,704.26 points.
