European stocks slip lower; risk sentiment fragile ahead of payrolls

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European stocks slip lower; risk sentiment fragile ahead of payrolls

Investing.com - European stock markets drifted lower Thursday, trading in a subdued manner ahead of the key monthly US jobs report amid renewed concerns over the prospects for the world’s largest economy.The main European indices traded in a tight range Thursday, but sentiment remains fragile ahead of Friday’s crucial USrelease as investors look for clues about how aggressively the Federal Reserve may look to cut interest rates later in the month.

Weak U.S. manufacturing data earlier in the week exacerbated concerns over the economic outlook, while Wednesday’s bigger-than-expected drop inThe JOLTS report “adds to the body of evidence that the labor market is not only looser than pre-pandemic but is continuing to cool and potentially now at a faster pace," Citi analysts said in a note.

This was a rare piece of good news, especially after data released earlier this week suggested manufacturing activity remains weak in Europe in August.for July are expected later in the session, and are expected to show a small improvement after a drop of 0.3% the prior month. The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, is discussing delaying its oil output increase scheduled to start in October, Reuters reported on Wednesday, citing sources.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

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