European equities fall ahead of US payrolls; Tui sinks

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European stock markets were in confined ranges on Friday, with disappointing German trade data weighing on the markets ahead of the publication of vital US jobs data. The DAX in Germany was down 0.3 percent at 3:45 a.m. ET (0745 GMT), the CAC 40 in France was down 0.2 percent, and the FTSE 100 in the United Kingdom was up 0.2 percent, bucking the trend.

As Europe’s largest economy and key growth driver felt the effects of global supply chain challenges, German exports declined for the first time in 15 months in August, falling by 1.2 percent versus the 0.5 percent increase forecast.

Manufacturing orders and industrial production both fell sharply in August, capping off a gloomy week of statistics from Europe’s largest economy. The negative report eclipsed the bright news from Asia, which saw Chinese mainlan markets reopen after a week-long holiday and the country’s services sector resume growth in September after being hurt by Covid-19 lockdowns in August.

Following the Senate’s approval of legislation to temporarily expand the federal government’s debt ceiling and prevent a historic default, Wall Street closed significantly higher on Thursday.

In other news, Stellantis (DE:8TI) stock dropped 0.1 percent after the automaker stated it is considering spinning off its two largest Opel facilities, a move that unions regard as a prelude to their eventual closure. Due to chip shortages, the Eisenach facility has already been shut down till the end of the year.

The stock of Tui (DE: TUIGn) fell 13% after the travel company disclosed intentions for a more than 1-billion-euro capital issue to help pay off large state-backed loans made during the pandemic. However, the focus will be on the monthly official U.S. employment report, which is expected to indicate a revival in the labour market, allowing the Federal Reserve to scale back its mammoth bond-buying programme later Friday. In September, the economy is estimated to have added 500,000 jobs, a significant increase over the 235,000 jobs added in August.

Crude prices rose again on Friday, heading for a seventh weekly gain, as questions arose over whether the US Energy Department would consider releasing oil from strategic stockpiles. The possibility of the US increasing supply to the market as a means of lowering oil prices was raised on Thursday.

On the strength of signals of stronger fuel demand as economic activity recovers, OPEC producers only gradually raising supply, and fears that a severe winter will further strain gas supplies, these have surged to multi-year peaks.

By 3:45 AM ET, U.S. crude futures traded 1.5% higher at $79.44 a barrel, while the Brent contract rose 1.4% to $83.11. Earlier in the week, WTI touched itshighest in nearly seven years while Brent Oil Futures hit a three-year high. Additionally, gold futures edged 0.1% lower to $1,756.85/oz, while EUR/USD traded 0.1% lower at 1.1547.

Story By: Norvisi Mawunyegah