European Stock Markets React to U.S. Employment Data

In a surprising turn of events, major European stock exchanges experienced significant declines at the close of Friday's trading session. This downturn was primarily influenced by the United States' report of a higher-than-expected number of nonfarm payrolls in December 2024. The robust job figures have led to speculation that the U.S. Federal Reserve might implement fewer interest rate cuts than previously anticipated, a move that could have far-reaching implications for the global economy.

Impact on Major Indices and Stocks

The DAX index saw a 0.50% decrease by the end of the day, with Zalando's shares taking a notable hit, dropping by 5.39%. Similarly, the Euro Stoxx 50 index fell by 0.81%, with AB InBev's shares decreasing by 4.14%. The French CAC 40 index wasn't spared either, closing the session 0.79% lower, as Pernod Ricard's shares fell by 3.99%. Across the channel, the UK's FTSE 100 index also experienced a downturn, falling by 0.86%, with Schroders' shares plummeting by 4.35%.

Currency Movements

In the currency markets, the euro was trading 0.67% lower against the dollar at 5:33 pm CET, priced at 1.02328. Simultaneously, the British pound also saw a decline, dropping 0.89% against the dollar to trade at 1.22011.