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The markets are missing the direction after the sell-off

LONDON – European stocks expected mixed openings on Friday as investors waited for key job data and digested the Fed’s more restrictive tone.

The British FTSE opens 11 points higher at 7452, the German DAX 12 points lower at 16030 and the CAC is expected to open 1 point lower at 7245, according to IG.

The minutes of the Fed’s December meeting on Thursday revealed a restrictive stance within the central bank. Officials said they were ready not only to hike rates and cut bond purchases, but also to have talks about lower holdings of government bonds and mortgage-backed securities.

The news sparked a sell-off in many markets around the world.

Tech stocks were particularly hard hit during Thursday’s session in Europe as higher interest rates could hurt their earnings. The German software company Nemetschek was at the bottom of the index with a minus of 7%.

Meanwhile, the US benchmark 10-year Treasury yield hit 1.75% on Thursday, well above 1.51% the previous week.

Job report

Friday’s session is likely to be affected by new job data from the US at 8:30 a.m. ET / 1:30 p.m. GMT.

Economists estimate that the US economy created 422,000 jobs in December, according to Dow Jones data. The unemployment rate due at the same time should be 4.1%.

Back in Europe, investors will be looking at new trading data from Germany and France. There will also be annual inflation rates for the euro area and new consumer confidence data.

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On the political front, the Foreign Minister of the North Atlantic Treaty Organization (NATO) will meet practically on Friday to discuss Russia’s troop build-up near Ukraine. Their meeting precedes the high-level talks between Russia, the US and NATO next week.

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