by Diana Mandia

(Reuters) – European stocks ended the week without direction as losses in the autos sector and mining group Aurubis weighed on gains in energy and basic resources.

In Paris, the CAC 40 ended down 0.27% at 7,296.77 points. Britain’s Footsie gained 0.34% and Germany’s Dax fell 0.67%.

The EuroStoxx 50 index ended down 0.31%, the FTSEurofirst 300 gained 0.01% and the Stoxx 600 fell 0.01%.

The automotive sector, which lost 2.58% following the lowering by UBS of its recommendations on Volkswagen (-5%) and Renault (-6.25%), as well as the plunge of Aurubis (-6%) – which suspects a criminal gang stole some of its metal – dragged some markets lower on Friday.

Chinese manufacturing activity, which came out at 51.0 in August against a consensus of 49.3, on the other hand supported commodity prices and, with them, energy and mining stocks, and suggested that Beijing’s efforts to boosting economic growth were bearing fruit.

Hopes for a recovery are also visible in Europe, where manufacturing activity contracted at a slower pace than in July, according to final results from the monthly S&P Global/Hamburg Commercial Bank survey.

The publication on Thursday of the first estimates of inflation in the euro zone, which showed a greater than expected fall in underlying prices in August, further contributed to making the markets very inclined to consider that the European Central Bank (ECB ) will maintain its rates at its September 14 meeting.

According to the Governor of the Banque de France, François Villeroy de Galhau, the ECB is “very close” to the high point on its interest rates.

DAILY INDICATORS

The much-anticipated monthly US jobs report showed on Friday that the jobless rate rose in August and wage growth slowed, prompting expectations that the Federal Reserve could pause interest rate hikes. .

US manufacturing activity also contracted for the tenth consecutive month in August, although the pace of decline has slowed, suggesting that the sector may be starting to stabilize at low levels.

VALUES

The energy compartment rose 1.93% on Friday, helped by Chinese data and forecasts of oil production cuts by producing countries until the end of the year.

The basic resources sector for its part gained 1.48%, as prices for most metals rose after the publication of an unexpected recovery in manufacturing activity in China, its main consumer.

In Paris, Casino dropped 4.93% after ratings agency S&P Global downgraded the distributor’s credit rating from “CC” to “D”, saying it failed to honor the coupon due mid- July on certain bonds.

AT WALL STREET

At closing time in Europe, the Dow Jones gained 0.03%, while the Standard & Poor’s 500 and Nasdaq Composite turned down and dropped 0.11% and 0.34% respectively. Wall Street digests a jobs release with mixed data, with the labor market remaining solid despite some signs of deterioration.

CHANGES

The dollar gains against the euro after the jobs report.

The greenback gained 0.53% against a basket of benchmark currencies, while the euro EUR= fell 0.55% to 1.0781 dollars.

RATE

Eurozone bond yields edged higher on Friday in a volatile market, while posting a weekly decline as investors digest data on both sides of the Atlantic suggesting central banks may be near the end of their cycle of tightening.

The ten-year German yield rose more than 6 basis points to 2.537%, while that of the two-year rate ended almost unchanged at 2.984%.

In the United States, bond yields first deepened their decline with the employment report before rising again.

The ten-year Treasury yield rose more than 10 basis points to 4.2004%, while the two-year rate US2YT=RR nibbled three basis points to 4.8889%.

OIL

Oil prices rose on Friday and are on track to end two weeks of losses, buoyed by hopes of an extended supply tightening from OPEC+.

Brent thus advances by 1.45% to 88.09 dollars a barrel, American light crude (West Texas Intermediate, WTI) progressing by 1.7% to 85.05 dollars.

TO BE FOLLOWED ON MONDAY:

THE MARKET SITUATION

(Some data may show a slight shift)

(Written by Diana Mandia)

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