On the eve of the US jobs data , which is widely anticipated in light of Jerome Powell’s warnings that interest rate rises might be accelerated should the economy show no signs of slowing, stock markets in London mainly declined on Thursday.
Oil prices were under pressure as a result of growing worries that increasing rates may trigger a recession.
In the meantime, European gas prices decreased by 19 months, also as a result of increased supply.
According to Michael Hewson, chief market analyst at CMC Markets UK, the February payrolls data will be the focus for the remainder of the week.
European shares subdued as strong US jobs data fan worries
“In only one month, the narrative has changed from one that predicted rate cuts before the end of the year to one that predicts a pause in rate increases within the next few months.”
A significant Bank of Japan meeting will take place on Friday.
In the midst of growing rumors’ of a “legacy” policy change, the BoJ will convene for the final time while Haruhiko Kuroda is the governor, according to Stephen Innes of SPI Asset Management.
The governor of the central bank with the longest tenure, Kuroda took office in 2013 and has tried everything from a negative interest rate to massive purchases of government bonds to revive Japan’s ailing economy.
He has maintained his position over the last year, despite other central banks raising rates to combat inflation, which has caused a policy gap that has caused the yen to decline versus the dollar.
On Thursday, the yen gained ground against the US dollar after losing ground against the euro and the pound.
The impact of colder weather was overshadowed by high storage levels, which caused wholesale natural gas prices in Europe to plunge to their lowest point since August 2021.
After steep declines in recent months, the benchmark European contract, Dutch TTF gas futures for the following month, fell to 40.50 euros per megawatt hour.
Afterwards, it gained momentum to trade over 41 euros.
Key figures around 1200 GMT
London – FTSE 100: DOWN 0.6 percent at 7,886.24 points
Frankfurt – DAX: DOWN 0.3 percent at 15,582.70
Paris – CAC 40: DOWN 0.3 percent at 7,305.45
EURO STOXX 50: DOWN 0.3 percent at 4,275.03
Tokyo – Nikkei 225: UP 0.6 percent at 28,623.15 (close)
Hong Kong – Hang Seng Index: DOWN 0.6 percent at 19,925.74 (close)
Shanghai – Composite: DOWN 0.2 percent at 3,276.09 (close)
New York – Dow: DOWN 0.2 percent at 32,798.40 (close)
Euro/dollar: UP at $1.0573 from $1.0547 on Wednesday
Pound/dollar: UP at $1.1889 from $1.1845
Euro/pound: UP at 89.09 pence from 89.01 pence
Dollar/yen: DOWN at 136.26 yen from 137.43 yen
Brent North Sea crude: UP 0.1 percent at $82.77 per barrel
West Texas Intermediate: UP 0.1 percent at $76.76 per barrel