European Shares Slide as Strong US Jobs Data Push Back Fed Bets
European stocks dropped by the most in three weeks as a hotter-than-expected US jobs report fueled worries that the Federal Reserve will keep rates higher for longer.
The Stoxx Europe 600 Index fell 0.8% by the close, with utilities, food and beverage and retail stocks falling the most and autos stocks outperforming. The UK’s domestic-oriented FTSE 250 dropped 1.4%, notching the worst weekly decline since mid-2023, on concerns about the country’s fiscal deficit and higher inflation.
US nonfarm payrolls increased 256,000 following a slight downward revision to the prior two months’ figures, a Bureau of Labor Statistics report showed Friday. The unemployment rate fell to 4.1%, while average hourly earnings rose 0.3% from November.
The data prompted traders to push back their expectations for rate-cuts, with full-pricing of the next Fed cut shifting to October.
Source : Bloomberg
