European Stocks Ease Off Record Highs Ahead of US Economic Data

(Bloomberg) -- European stocks eased off Friday’s record high levels as investors awaited US data to gauge the threat of a possible recession and for clues about the Federal Reserve’s next moves on interest rates.      

The Stoxx Europe 600 Index was down about 0.4% at 522.70 points after hitting a fresh intraday record at the open. US stock-index futures were also trading lower as Wall Street prepared to reopen after Monday’s Labor Day holiday. 

Mining and energy stocks were among the worst performing sectors stocks. Among individual stocks, Rightmove shares traded about 4.5% lower after the UK property portal announced late on Monday that it has not been approached about a possible takeover by REA Group. 

By contrast, shares of Partners Group fell as much as 8%, the most since May 2022, after the private equity group’s first-half results disappointed investors. 

Overall, traders are in a wait-and-see mode, according to Alexandre Hezez, chief investment officer at Group Richelieu, with data due today on manufacturing in the US and the monthly employment report set for Friday. 

“Markets remain calm, and volatility has diminished,” he said. “Investors are awaiting economic data that should confirm that the U.S. economy is slowing down, but, for now, there is no reason to fear a recession.”

Concerns over a hard landing of the US economy sparked tensions this summer across global financial markets, though those have since receded. Fed Chair Jerome Powell signaled last month that the central bank is on the verge of cutting interest rates this month, spurring optimism that the central bank has managed to cool inflation while avoiding a recession. 

For more on equity markets:

You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance. To subscribe to a daily list of European analyst rating changes, click here.

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.