European stocks continue to decline
On Friday, a third day of losses sent European stocks toward a weekly decline as investors awaited a U.S. jobs report amid growing bets for a Federal Reserve rate rise.
The Stoxx Europe 600 Index dropped 0.5 percent at 10:55 a.m. in London. The monthly payrolls report, forecast to show U.S. employers added jobs at a faster pace in September, comes after a string of strong data prompted traders to boost prospects for a Fed hike this year. That adds to concerns the European Central Bank may turn less accommodative following reports it has held discussions on the best way to taper quantitative easing.
Stoxx 600 lenders rose for a fourth day, widening a divergence from the broader market. A tightening in global monetary policy could bring respite to banks, which have been this year’s worst performers amid concerns about profitability in a low-rate environment. Deutsche Bank AG rose 1.3 percent after people familiar with the matter said it’s holding informal talks with securities firms to explore options including raising capital.
Traders are pricing in a 64 percent chance of higher U.S. borrowing costs in December, up from almost even odds last week. Odds for a November hike are at 24 percent.
Among stocks active on corporate news, Delta Lloyd NV added 2.1 percent after rejecting NN Group NV’s unsolicited 2.4 billion euro ($2.7 billion) cash offer, saying it undervalued the company.
E.ON SE rose 2.4 percent after a report that Cevian Capital AB is evaluating buying a 10 percent stake in the German utility.
Asian stocks fell ahead of a closely watched U.S. payrolls report as stronger economic data fueled bets the Federal Reserve will raise interest rates this year. The MSCI Asia Pacific Index lost 0.3 percent to 140.20 as of 4:11 p.m. in Hong Kong, paring its weekly gain.