European Shares Set To Drift Lower As Recession Fears Swirl

RTTNews | 159 days ago
European Shares Set To Drift Lower As Recession Fears Swirl

(RTTNews) - European stocks are seen opening notably lower on Friday as recession worries gripped markets.

Newly released manufacturing and labor market data in the United States on Thursday heightened concerns about a potential recession and worries that the Federal Reserve might be slow in cutting interest rates.

Asian factories turned in a weak performance last month and the eurozone's manufacturing sector suffered yet another setback at the start of the third quarter, raising the risk of an underpowered global economic recovery.

Asian markets tumbled in their biggest drop since 2022, with Japan's Nikkei plummeting nearly 5 percent as technology stocks suffered heavy losses and a strengthening yen clouded the outlook for the country's exporters.

The dollar steadied and a rally in Treasuries extended into a seventh straight day as investors await the U.S. Labour Department's closely watched employment report for July later in the day for further clues about the state of the economy and the Fed's rate path.

Economists expect moderation in job growth while the unemployment rate is expected to remain steady at 4.1 percent.

On the earnings front, online retailer Amazon disappointed Wall Street with its outlook for the current quarter.

Chipmaker Intel revealed drastic plans to slash its employee headcount and capital spending, while Apple beat expectations despite posting worst iPhone sales in years.

Energy giants Exxon Mobil and Chevron are due to report their quarterly results before the U.S. opening bell later today.

Gold ticked higher in Asian trade on rate cut optimism. Oil edged up slightly but was on course for a fourth weekly fall as demand concerns overshadowed worries of a broadening Middle East crisis.

U.S. stocks tumbled overnight as a fresh dose of weak economic data reignited recession fears and offset upbeat earnings news from Facebook parent Meta Platforms and optimism about a near-term interest rate cut by Federal Reserve.

Early gains evaporated as data showed manufacturing activity contracted sharply in July and weekly jobless claims jumped to an 11-month high.

The tech-heavy Nasdaq Composite lost 2.3 percent, the S&P 500 declined 1.4 percent and the Dow dipped 1.2 percent.

European stocks also fell sharply on Thursday after the release of downbeat Eurozone PMI and unemployment data.

Meanwhile, the Bank of England cut rates for the first in over four years and signaled further cautious reductions ahead.

The pan European STOXX 600 dropped 1.2 percent. The German DAX slumped 2.3 percent, France's CAC 40 plummeted 2.1 percent and the U.K.'s FTSE 100 gave up 1 percent.

read more
TSX Modestly Higher, Looks Set To End On Firm Note

TSX Modestly Higher, Looks Set To End On Firm Note

The Canadian market is modestly higher Wednesday afternoon thanks to technology and materials stocks. Healthcare, communications, consumer discretionary and utilities stocks are among the notable losers.
RTTNews | 6h 51min ago
Fed Officials Prefer Careful Approach To Rate Decisions Amid Inflation Risks

Fed Officials Prefer Careful Approach To Rate Decisions Amid Inflation Risks

Many Federal Reserve officials believe a careful approach to interest rate decisions will be necessary over the coming quarters, according to the minutes of the central bank's December monetary policy meeting. The minutes said the careful approach will be needed due to a variety of factors, including increased upside risks to the outlook for inflation.
RTTNews | 7h 11min ago
Swiss Market Ends Modestly Higher

Swiss Market Ends Modestly Higher

After a good spell till an hour past noon, Swiss stocks retreated, but emerged higher in the final hour thanks to selective buying to end the day's session on a positive note.
RTTNews | 7h 51min ago
European Stocks Close Lower On Weak Economic Data

European Stocks Close Lower On Weak Economic Data

European stocks closed weak on Wednesday, weighed down by data showing a drop in eurozone economic sentiment in the month of December, and decline in German retail sales and factory orders.
RTTNews | 8h 11min ago
Euro Falls On Tariff Concerns

Euro Falls On Tariff Concerns

The euro dropped against its most major counterparts in the New York session on Wednesday on concerns that implementation of new tariffs by the incoming Donald Trump administration could lift inflation.
RTTNews | 8h 36min ago
U.S. Wholesale Inventories Dip 0.2% In November, In Line With Estimates

U.S. Wholesale Inventories Dip 0.2% In November, In Line With Estimates

Wholesale inventories in the U.S. dipped in line with estimates in the month of November, the Commerce Department revealed in a report released on Wednesday. The Commerce Department said wholesale inventories slipped by 0.2 percent in November, matching the preliminary estimate as well as economists' expectations.
RTTNews | 11h 28min ago
U.S. Jobless Claims Unexpectedly Slip To Nearly Eleven-Month Low

U.S. Jobless Claims Unexpectedly Slip To Nearly Eleven-Month Low

With the more closely watched monthly jobs report looming, the Labor Department released a report on Wednesday unexpectedly showing another modest decrease by first-time claims for U.S. unemployment benefits in the week ended January 4th. The report said initial jobless claims slipped to 201,000, a decrease of 10,000 from the previous week's unrevised level of 211,000.
RTTNews | 12h 7min ago
U.S. Private Sector Job Growth Slows More Than Expected In December

U.S. Private Sector Job Growth Slows More Than Expected In December

Private sector employment in the U.S. increased by less than expected in the month of December, according to a report released by payroll processor ADP on Wednesday. The report said private sector employment rose by 122,000 jobs in December after climbing by 146,000 jobs in November. Economists had expected private sector employment to grow by 140,000 jobs.
RTTNews | 12h 44min ago