Technology sector pushes European stocks lower
On Friday European stocks moved lower as declines in the technology sector more than balanced gains in oil and auto shares, while investors remained prudent before of U.S. payrolls data.
The pan-European STOXX 600 index shed 0.3%, with tech stocks losing about 1% as rising bond yields lowered the highgrowth sector’s appeal.
U.S. jobs data scheduled to be published at 1230 GMT, is expected to show an increase in hiring in September as the effects of the latest COVID-19 surge began to wane. While strong numbers could strengthen the case for the U.S. Federal Reserve’s withdrawal of its support for the economy, many analysts expect that even a second straight weak employment report would be unlikely to disrupt the central bank from announcing a tapering of its bond purchases later this year.
Still, the European stocks benchmark was moving towards modest weekly gains as respite over a provisional lifting of the U.S. debt ceiling offset worries that surging energy costs would push inflation higher.
Oil & gas stocks gained 0.8% as crude prices increased on doubts the U.S. government would make available oil from its strategic reserves.
UK travel stocks, including British-Airways owner IAG, Whitbread and Ryanair, rose between 0.2% and 2.8% after Britain was set to abandon difficult COVID-19 quarantine requirements for 47 destinations.
Czech trucking services firm Eurowag dropped 9% in its London market debut after floating a day late and at a cut price. Auto stocks gained1.2%, recovering from a selloff in September on concerns about supply chain bottlenecks and chip shortages hurting production. German carmaker Daimler gained 2.5% as UBS upgraded its stock to “buy” from “neutral” and increased its price target to 100 euros from 79 euros. Cnova NV, the e-commerce arm of French retailer Casino dropped 5.5% after saying it could no longer confirm its June financial forecast due to challenging thirdquarter business conditions.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.