PARIS (Reuters) – Major European stock markets were up at the open on Monday, with markets consolidating after posting their biggest decline in a month on Friday in the wake of the U.S. jobs report.
In Paris, the CAC 40 rose by 0.39% to 7,380.88 points at around 07:04 GMT. The Dax in Frankfurt strengthened by 0.33%, while the FTSE in London advanced by 0.57%.
The pan-European FTSEurofirst 300 index gained 0.49%, the EuroStoxx 50 gained 0.52% and the Stoxx 600 increased by 0.5%.
Investors are digesting the latest U.S. jobs data, which offer a mixed picture of activity.
The number of jobs created was lower than expected by the markets and the figures for the previous two months were revised downwards, but unemployment fell and the pace of wage increases remains strong.
“The August employment reports, so eagerly awaited by the markets, did not provide a definitive answer on the extent of the slowdown in the American labor market,” summarize LBPAM strategists.
“This leaves open the question of whether the Fed will start cutting rates next week with a classic 25bp cut, or a more aggressive 50bp cut.”
The upcoming European Central Bank meeting on Thursday will add to investor caution this week.
The technology sector was the best performing sector in the Stoxx 600, up 1.3%, as investors took advantage of entry points enabled by the sector’s sharp decline over the previous week.
Luxury, however, remains penalized by concerns about the slowdown in Chinese demand. The biggest fall in the CAC 40, Kering, fell 1.9% after recommendation downgrades by Barclays and RBC.
(Written by Corentin Chappron, edited by Blandine Hénault)
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