Positive employment data in the US pulls Europe into the red
European equities ended the session in negative territory after more positive-than-expected US job creation data was released, suggesting a good labor market, dampening expectations for a more accommodating policy from the US Reserve.
The Stoxx 600 fell 1.18% to 391.67. Among the 20 sectors that make up the European benchmark, technology is losing the most, followed by retail, industry and real estate.
The rest of European markets plunged into the red sea, with Amsterdam leading the way, down 2.16%. Milan lost 1.13%, Madrid 0.99%, Frankfurt 1.59%, Paris 1.17% and London 0.09%.
On a stand-alone basis, Credit Suisse added 5.4% after the buyback announcement to calm the market after recent worries about the bank’s strength.
“Under normal circumstances, higher-than-expected employment data would be considered good news and likely a catalyst for a rally in the stock market,” Quilter Investors’ Paul Craig told Bloomberg on the impact of the US news. “But these days we live in a parallel world where good news is bad and bad news is good, and investors are trying to predict the next move by the US Federal Reserve and whether it will soften its aggressive stance,” he added.
