European shares open lower ahead of US payrolls report

European shares fell in early trading on Friday, hit by a drop in ArcelorMittal, as investors await the US April payrolls report for more clues about the interest rate outlook in the world’s largest economy.

Economists forecast Friday’s payrolls data will show US employers added 202,000 workers in April following a 215,000 increase in March, with the jobless rate holding at 5.0 per cent.

The pan-European FTSEurofirst 300 index was down 0.4 per cent by 0721 GMT, weiged down by losses among minining and energy stocks. The index is on course for its second straight week of losses.

Among top fallers, ArcelorMittal fell 2 per cent after its first-quarter core profit fell by about a third, while Man Group fell 6.9 per cent, hit by a downgrade by Citi to “sell”.

On the upside, Monte dei Paschi rose 5 per cent after first-quarter net profit at the battered Italian lender beat forecasts due to lower loan loss charges, an increase in commissions and falling costs.

Reuters