FRANKFURT: European shares edged lower on Friday, as elevated government bond yields weighed on stocks, with attention now turning to U.S. jobs data that may provide clues on the Federal Reserve’s interest rate trajectory.
The pan-European STOXX 600 was down 0.1% by 0816 GMT, although set for its best weekly performance in six weeks.
Yield on European government bonds remained elevated, with the yield on the German 10-year bund hitting its highest level in six months. Utilities, often traded as a bond proxy, were down 1%.
The U.S. jobs report, set for release at 1330 GMT, is expected to reveal a moderation in job growth for December, though it is still anticipated to remain robust. The unemployment rate is likely to stay at 4.2%, supporting the Federal Reserve’s cautious stance on interest rate cuts this year.
Early in the trade, the food and beverages sub-index was among the top losers in the STOXX, with alcohol manufacturers such as Pernod Ricard and Heineken declining about 1% each.
Among individual stocks, Ubisoft fell 8% after the French gaming giant announced another delay in the release of its blockbuster franchise Assassin’s Creed.
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