European stocks drop on oil, Fed rate-cut concerns: Markets wrap

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European stocks slumped the most in almost two months, tracking a broad market retreat, as oil prices held near five-month highs and investors braced for a key reading on the US labour market.

“Clearly, geopolitical risks are rising and that is on everyone’s radar right now, hence some softness in equity markets and credit spreads,” said Luke Hickmore, a portfolio manager at Abrdn Investment Management. He added that he was also focused on the upcoming US employment report for March. US nonfarm payrolls data due later Friday are expected to show more than 200,000 new roles added to the economy last month. A further sign of robust activity may lead the Fed to keep interest rates higher for longer. Currently, money markets are expecting fewer than three US rate cuts this year.

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