European stocks sag at open before US data

Traders work on the floor of the New York Stock Exchange (NYSE) July 27, 2022. US Federal Reserve on Wednesday again raised the benchmark interest rate by three-quarters of a percentage point in its ongoing battle to tamp down raging price pressures that are squeezing American families.(Photo: AFP)
LONDON — European stocks opened lower Friday before vital US jobs data, as investors digested the Bank of England's gloomy warning of a protracted recession in Britain as inflation rockets further.اضافة اعلان

London's benchmark FTSE 100 index of major companies slid 0.1 percent to 7,442.28 points, one day after the BoE unveiled a half-point interest rate hike and forecast inflation topping 13 percent on surging domestic energy bills.

In the eurozone, the Paris CAC 40 dipped 0.1 percent to 6,504.05 points, and Frankfurt's DAX also shed 0.1 percent to 13,651.95 compared with Thursday's closing levels.

Later on Friday, traders will focus on US non-farm payrolls data which will provide a fresh snapshot of the health of the world's number one economy.

"The BoE became the first major central bank to forecast a recession as their base case scenario officially," said MUFG economist Lee Hardman.

He added: "Market participants will now closely scrutinize today's NFP report for any signs that weakness in activity data in the US economy is starting to spill-over into the labor market with a lag which would heighten (US) recession fears."

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