LONDON — European stocks closed lower Friday afternoon, paring earlier gains after a weaker than expected U.S. jobs report clouded global sentiment.
The pan-European Stoxx 600 closed down 1.15%, with all major bourses and almost all sectors ending in the red. Tech and mining stocks saw the biggest losses, shedding 2.39% and 2.41%, respectively. Health care stocks were a rare outlier, up just 0.02%.
The benchmark ended the week down 2.5%, marking its biggest weekly loss since the early August sell-off.
The fall follows declines on Wall Street after the August jobs report showed payrolls rose 142,000, less than the 161,000 forecast by analysts polled by Dow Jones. The unemployment rate met expectations for a decline to 4.2% from 4.3%.
U.S. stocks sunk in morning trade, with the S&P 500 falling 1.63% and heading for its worst week since April. The Nasdaq also slumped 2.48%.
A slew of data from the U.S. has already come in weaker than expected this week, including manufacturing surveys, jobs openings and private sector payrolls, fueling bets that the Fed will cut by 50 rather than 25 basis points at its Sept. 18 meeting. CME Group’s FedWatch tool last put the probability of a 50 basis point cut at nearly 50%, higher than before the latest release.
In Europe, Volvo Cars slid to its lowest level since January. The Swedish automaker said on Thursday that it would scale back its medium-term margin and revenue targets, along with its aim of selling all electric and plug-in hybrid vehicles by 2023. Shares closed down 5.7%.
Investors are also monitoring news that the European Union Aviation Safety Agency has ordered inspections of the Rolls-Royce manufactured engines on Airbus A350-1000 aircraft, used by numerous airlines. That comes after a Cathay Pacific A350 flight from Hong Kong to Zurich was forced to land because of a fire in the fuel system, triggering a fleet-wide inspection and the replacement of numerous engine parts.
Next week, U.K. employment and wage data and economic growth figures will be released, and the next monetary policy meeting for the European Central Bank will take place following its summer break.
The ECB is widely expected to resume the path of interest rate cuts following a pause in July.
Treasurer Jim Chalmers appeared on Channel 9's Today Show this morning with host Karl Stefanovic.He was asked for his reaction to the US rate cut and how things
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