European shares muted as markets brace for US payrolls
Removes reference to SoftBank in paragraph 13
Real estate leads losses, technology stocks gain
STOXX down 0.1%, set for weekly gains
doValue gains after entering binding agreement to buy Gardant
By Shristi Achar A
June 7 (Reuters) -European shares edged lower onFriday, a day after the European Central Bank eased borrowing costs as was widely expected, with the focus now shifting to the U.S. jobs data to gauge the Federal Reserve's interest rate path.
The continent-wide STOXX 600 .STOXX was down 0.1%, asof 0818 GMT, but was poised to clock its first weekly gain in three.
The ECB delivered a 25-basis-point rate cut on Thursday, its first since 2019, joining its counterparts in Canada, Sweden and Switzerland in easing the monetary policy.
The central bank, however, provided little clues about the future interest rate path, causing traders to scale back bets of additional rate cuts.
Finnish ECB policymakerOlli Rehn said in a blog post that inflation will continue to decline and interest rate cuts will support economic recovery, while Bundesbank PresidentJoachim Nagel said the ECB was not on autopilot mode and still acting restrictively despite the cut.
"Despite the bumpy ride in inflation expectations over the coming months, our view remains that the disinflation trend is intact in Europe," Mohit Kumar, chief economist Europe at Jefferies, wrote in a note.
"We also feel that the next cut will be influenced by the Fed and the macro picture in the U.S."
Market attention is now on the key U.S. nonfarm payrolls data due later in the day, which could show signs of easing labour market pressures and firm bets of September cut from the Fed.
Technology stocks .SX8P gained for the third straight session and cushioned the benchmark index, up 0.5%.
Real estate .SX86P led sectoral losses, dragged by a 3.4% fall in German real estate group Vonovia VNAn.DE on a Morgan Stanley rating downgrade.
Sweden's blue-chip OMXS30 index .OMXS30 outpaced the region's bourses, up nearly 0.4%, while France's CAC 40 .FCHI and Germany's DAX 40 .GDAXI were laggards, down 0.4% each.
Temenos TEMN.S added 2% after the Swiss banking software firm announced a new share buyback programme of up to 200 million Swiss francs ($224.92 million).
doValue DOVA.MI advanced 5.5% as Italy's biggest bad loan company was set to acquire rival Gardant in a deal that includes 230 million euros ($250.59 million) in cash and the rest in stock.
Investors will also watch the euro zone's revised gross domestic product (GDP) numbers for the first-quarter later in the day.
Reporting by Shristi Achar A in Bengaluru; Editing by Janane Venkatraman and Sohini Goswami
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
