Europe open: Selloff continues after weak US data

2nd Aug 2024 07:52

(Sharecast News) - European shares were sharply lower again as markets opened on Friday, after weak US manufacturing data sparked a global selloff.

The pan-regional Stoxx 600 index was down 1.29% in early deals at 505 with all major bourses lower. Eyes are now on US payroll numbers later in the day.

"Markets have opened lower as risk-off sentiment runs riot. Two key bits of data sent jitters through US markets that reverberated around the globe: US weekly unemployment claims rose to an almost one-year high, and manufacturing was weak," said Matt Britzman, senior equity analyst at Hargreaves Lansdown.

"There are now concerns that the soft-landing scenario priced in for most of the year could be a pipe dream, and the Federal Reserve might have missed its chance to prevent an economic slowdown by not acting on rates earlier in the week. US jobs are out today, and further weakness here will simply exacerbate the current sell-off. Bad news is back to being simply bad news."

In equity news shares in airline group IAG bucked the trend and made strong gains after strong first half results and the resumption of dividends.