Though it is questionable how much the morning session will matter given it is a nonfarm Friday, the European indices quickly returned yesterday’s unemployment claims-ignoring gains after the bell.
Following a better than forecast, but still subpar, Chinese Caixin services PMI – March came in at 43.0 against the 39.6 forecast and the 26.5 posted in February – the FTSE was the worst hit, tumbling more than 1%. That left the UK index straining to hold its head above 5400, dragged lower by 4.3% and 3% falls for BP (LON:BP) and Shell (LON:RDSa).
The Eurozone was only a tad better. The DAX shed half a percent, slipping to 9500, while the CAC lost 0.7% as it fell under 4200.
Before this afternoon’s potentially history-making nonfarm jobs report, Europe has to deal with the final version of March’s services PMIs. The Eurozone is expected to see a slight revision lower, from 34.5 to 34.3, but with the UK looking at a slightly more significant cut, from 35.7 to 34.7.
As for the Dow Jones, that’s facing a 250 point fall when trading begins across the pond. Between now and then, however, sits a nonfarm employment change reading that is set to swing from to 273k to -100k month-on-month – the first negative figure in just shy of a decade.
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