Global Economics

Dismal European stock market as investors prepare for U.S. jobs data; Swedish Orphan Biovitrum up 24 percent

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European equities rose slightly on Thursday morning as investors anticipated the release of the latest nonfarm payrolls report from the United States on Friday. By mid-morning, the Stoxx 600 had gained 0.3 percent, with travel and leisure stocks up 1.1 percent to lead advances, while basic resources fell 0.6 percent.

The publication of statistics from the United States in the next days will be eagerly watched by investors all over the world. The markets are anticipating the weekly initial jobless claims report on Thursday and the nonfarm payrolls report from the Labor Department on Friday. According to Dow Jones projections, the August nonfarm payrolls report would show 720,000 new jobs added and the unemployment rate will fall to 5.2 percent.

The statistics could have an impact on when the US Federal Reserve starts to taper its asset purchase programme, as well as the policy orientation of European central banks. On Wednesday night, stock futures in the United States were slightly changed. Per the recent pronouncements from the central bank, it is expected to lower the pace of its monthly bond purchases as long as job growth remains strong. Meanwhile, shares in Asia-Pacific markets were mixed overnight as investors responded to trade statistics and business news from the area; Australia’s Bureau of Statistics reported a trade surplus of $12.117 billion Australian dollars (about $8.93 billion) in July. Mainland Chinese equities were mixed after Chinese officials summoned and questioned 11 ride-hailing companies, requesting that they correct “illegal behavior.”

In other Covid vaccination news, Moderna and Takeda Pharmaceutical said on Wednesday that they are collaborating with Japanese authorities to recall multiple batches following the discovery of stainless steel contamination in some vials. Individual share prices for Swedish Orphan Biovitrum increased by more than 24% after US venture capital firms Advent International and Aurora Investment offered to buy the Stockholm-based biopharmaceutical business for 235 Swedish krone ($27.30) per share. Mining behemoth BHP fell 6% as it traded ex-dividend at the bottom of the European blue chip index.