European stock markets begin another day with a negative outlook, as weak U.S. data dampens investor sentiment.

European stock markets begin another day with a negative outlook, as weak U.S. data dampens investor sentiment.
European stock markets begin another day with a negative outlook, as weak U.S. data dampens investor sentiment.

European stocks are predicted to begin Friday with a decline, having experienced losses in each of the previous four trading days this week.

The FTSE 100 in the U.K. has decreased by 19 points to 8,233, while the CAC 40 in France has fallen by 18 points and the DAX in Germany has dropped by 50 points, according to IG data.

Since the early August sell-off, the pan-European index has had its worst performance, dropping nearly 2.5% from its record high last week.

The U.S. data has shown weaker results than anticipated, with manufacturing surveys, jobs openings, and private sector payrolls all falling short of expectations. This has led to market predictions that the Federal Reserve will cut by 50 basis points instead of 25 at its upcoming meeting on September 18. According to CME Group's FedWatch tool, the probability of a 50 basis point cut is currently at 41%.

The closely watched August jobs report will be released on Friday, as investors evaluate the extent of the slowdown in the world's largest economy.

U.S. stocks have had a difficult beginning to September due to economic data, with futures trading showing mixed results in the early hours.

In Europe, Airbus A350-1000 aircraft engines are being inspected by the European Union Aviation Safety Agency following a Cathay Pacific A350 flight from Hong Kong to Zurich that was forced to land due to a fire in the fuel system. This incident led to a fleet-wide inspection and the replacement of numerous engine parts.

The European Central Bank will hold its next monetary policy meeting after its summer break, and next week, the U.K. will release employment and wage data as well as economic growth figures.

It is predicted that the ECB will resume decreasing interest rates after a brief halt in July.

by Jenni Reid

Markets