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Europe close: Stocks slip after data shows US jobs market still running hot

By Alexander Bueso

Date: Friday 05 Aug 2022

Europe close: Stocks slip after data shows US jobs market still running hot

(Sharecast News) - European shares were mostly in the red on Friday as investors digested a far stronger-than-expected US payrolls report.
"The July nonfarm payroll report delivered a juicy plot twist in the Wall Street's Fed pivot playbook," said Edward Moya, senior market analyst at Oanda.

"Stubbornly high inflation and a global economic slowdown was expected to drag down the US economy, but after today's jobs report that does not seem to be the case."

The pan-European Stoxx 600 was down 0.76% at 435.72, with all major regional indices in the red alongside, save for Spain's Ibex 35 which edged up 0.08% to 8,168.0.

In parallel, the yield on the benchmark one-year German bund was up by 15 basis points to 0.956%.

Front-dated Brent crude oil was up by 1.4% to $95.54 a barrel on the ICE and the euro was down by 0.55% to 10190, having earlier hit 1.0142.

In equity news, advertising giant WPP fell, despite lifting annual sales guidance after a rise in interim profits, as investors fretted about the gloomy economic outlook ahead.

Deutsche Post shares gained 5% after the company reported double-digit growth in revenue and earnings and confirmed its outlook for 2022, driven by a strong performance in its freight and express business.


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