Europe midday: Shares slip on oil price rise as investors wait for US job data
European stocks were lower on Friday as investors eyed US non-farm payroll data later in the day.
The pan-European Stoxx was down 0.18% with regional markets mixed. Investors were relieved that the US avoided a default as the Senate approved a temporary lift to the $28.4trn debt limit.
US employers are expected to have added 490,000 jobs in September, up from 235,000 in August, sharply lower than forecasts.
“NFPs are important and could be market moving later since the Federal Reserve has explicitly tied tapering and subsequent rates lift-off to the labour market,” said Markets.com analyst Neil Wilson.
“A weak number could just dissuade the Fed from announcing its taper in November, but I see this as a low-risk outcome. More likely is steady progress on jobs and the November taper announcement to follow.”
Energy shares rose as US and Brent crude futures were up after the US Energy Department reportedly said it ha dno plans to release crude from its Strategic Petroleum Reserve.
Shares of oil majors BP and Royal Dutch Shell were higher on the news.
In other equity news, British-Airways owner IAG and travel company TUI gained as the UK was set to scrap Covid-19 quarantine requirements for 47 destinations.
Online pharmacy group Zur Rose fell to the bottom of the Stoxx after Berenberg downgraded the stock to ‘neutral’ from ‘buy’.
UK letter carrier Royal Mail gained after saying it had bought Canadian logistics company Rosneau Transport for CAD$360m (£210.5m).
Shares in mining equipment supplier Weir Group fell as the company said expected profit to be trimmed by up to £40m as the result of a cyberattack, it said in an update.