LONDON — European stocks continued to fall on Friday after falling for four straight trading days this week.
Pan-European Stocks 600 As of 9:25 a.m. London time, the index was down 0.32% as most sectors were lower.
After closing at a record high last week, the Stoxx 600 fell more than 2.5%, its worst performance since its sell-off in early August.
A string of weaker-than-expected data in the U.S., including manufacturing surveys, job openings and private sector payrolls, has led the market to increasingly expect the Federal Reserve to cut interest rates by 50 basis points rather than 25 basis points when it meets on September 18. CME Group’s FedWatch tool last predicted a 41% chance of a 50 basis point cut.
A closely watched August jobs report is due to be released on Friday as investors assess the scale of the slowdown in the world’s largest economy.
U.S. stocks got off to a tough start to September on economic data, with early morning futures trading mixed.
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In Europe, Volvo Cars Toyota shares fell 4 percent to their lowest since January. The Swedish carmaker on Thursday scaled back its medium-term profit margin and sales targets, and also said it aims to sell electric and plug-in hybrids by 2023.
Investors are also keeping an eye on news that the European Union Aviation Safety Agency has ordered inspections of the plane. Rolls Royce The company manufactures engines for the Airbus A350-1000 aircraft used by multiple airlines, after a Cathay Pacific A350 flying from Hong Kong to Zurich was forced to ground due to a fuel system fire, leading to a full aircraft overhaul and the replacement of numerous engine parts.
UK employment and wages data and economic growth figures are due to be released next week, while the European Central Bank’s next monetary policy meeting is due to take place after the summer break.
The ECB is widely expected to resume its rate-cutting course after pausing in July.