European Stocks Hover Near Record High Ahead of US Economic Data

(Bloomberg) -- European stocks opened flat, hovering around Friday’s record close 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 ticked down less than 0.1% to 524.87 points at 9:21 a.m. in Paris after hitting a fresh intraday high. US stock-index futures were mixed as Wall Street prepared to reopen after Monday’s Labor Day holiday. 

Utility and industrial stocks outperformed, while miners lagged. Among individual stocks, Rightmove shares traded about 2% lower after the UK property portal announced late on Monday that it has not been approached about a possible takeover by REA Group. 

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. 

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