European stocks weaken ahead of key EU inflation, US payrolls data

Jan 5, 2024: European stock markets fell Friday, with investors cautious ahead of the release of key European inflation data and the widely-watched monthly U.S. jobs report. At 03:15 ET (08:15 GMT), the DAX index in Germany traded 0.6% lower, the CAC 40 in France traded down 0.7% and the FTSE 100 in the U.K. fell 0.5%. Inflation, payrolls data in focus European equities have started the new year on a negative note as investors have repriced expectations of early interest rate cuts, primarily by the U.S. Federal Reserve. The influential monthly U.S. payrolls report is due later in the day, and its importance has increased this week after Thursday’s ADP private payrolls release provided even more evidence of labor market resilience, easing pressure on the Fed to cut rates early in the new year. Back in Europe, it’s inflation that will be in focus as the December eurozone CPI release is due later in the session.