European stocks drop before US non-farm payroll report

FXStreet (Mumbai) - European stocks fell Friday as investors believe a strong US jobs report will push the Federal Reserve another step closer to interest rate hike.

The pan-European Stoxx 600 index fell 0.4% to trade at 399.10. The index had shot to highs around 403-404 in the previous two sessions, before turning lower to trade below 400.00 levels. Germany’s DAX index was down 0.5% following some disappointing industrial output and export data. France’s CAC 40 index dropped 0.4% and the London’s FTSE 100 index fell 0.1%.

Bpost NC, the Belgian post group, fell is the worst performer so far with losses to the tune of 7.6%. Shares in UK bookmaker William Hill fell 6% after the company reported a slight in profits due to higher taxes. On the other hand, the Italina lender Banca Monte dei Paschi di Siena rose 8.83% after its capital level showed improvement.

Investors are looking ahead to the release of the July US jobs report later today as they try to gauge when the U.S. Federal Reserve will raise interest rates for the first time in almost a decade.

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