(Reuters) – European shares fell on Friday as frequent shifts in U.S. trade policy throughout the week resulted in risk aversion, while focus remained on the day’s upcoming key U.S. jobs data.
The pan-European STOXX 600 was down 0.7% as of 0817 GMT, and was on track to snap its streak of 10 straight weekly gains.
The benchmark index ended flat on Thursday as a boost from the European Central Bank’s interest rate cut countered pressures from rising long-term bond yields.
U.S. President Donald Trump on Thursday suspended tariffs of 25% he had imposed this week on most goods from Canada and Mexico, the latest twist in a fluctuating trade policy that has whipsawed markets.
Luxury stocks also weighed heavily on the main index; shares of Richemont lost 4.1%, Burberry slid 4% and Kering fell 2.6%.
Retailers also fell sharply by 1.3%, dragged by a 3.8% fall in e-retailer Zalando, after it secured the purchase of 90% of About You’s.
All eyes were on the U.S. nonfarm payrolls report, followed by a speech from Federal Reserve Chair Jerome Powell, which could provide clues about monetary policy outlook for the world’s biggest economy.
In other stocks, Grid operator Elia Group jumped 17% to the top of the STOXX 600 after reporting full-year results.
(Reporting by Nikhil Sharma; Editing by Mrigank Dhaniwala)
Comments