European stocks slip ahead of PMI, US jobs data

Rate-sensitive banks and financial services among the top decliners in early trading

Data later in the day is likely to show US employment growth pulled back in August

Data later in the day is likely to show US employment growth pulled back in August

 

European stocks slipped on Friday ahead of US employment data that could influence the Federal Reserve’s policy outlook, while fresh concerns about slowing Chinese growth dented the mood.

The pan-European STOXX 600 index was down 0.2 per cent in early trading but on track for small weekly gains.

Rate-sensitive banks and financial services were among the top decliners, with investment group Ashmore Group falling 3.9 per cent after its full-year results.

A private survey showed activity in China’s services sector contracted sharply in August as restrictions to curb the Covid-19 Delta variant threatened to derail the recovery.

Data later in the day is likely to show US employment growth pulled back in August, adding to recent signs of economic slowdown that could spur the Fed to provide support for longer.

IHS Markit’s final readings of August business activity in the euro zone and the UK are also due later on Friday. - Reuters