Global Economy
European Shares Slip Back as Investors Await US Jobs Report
European equity markets opened lower on Wednesday, with the CAC 40, DAX and broader Eurozone indices in the red as traders digested a string of corporate results. All eyes are now on the U.S. jobs report due later in the day, which is expected to show about 70,000 jobs added in January and could influence the Federal Reserve’s rate‑cut expectations. Meanwhile, earnings from Dassault Systèmes, TotalEnergies, Siemens Energy and LSEG provided a mixed backdrop for market sentiment. The upcoming jobs data, combined with recent retail‑sales figures that have already nudged U.S. Treasury yields lower, set the tone for a volatile session. Analysts at Deutsche Bank suggest the numbers could reinforce calls for further Fed easing, while investors brace for a packed earnings calendar across Europe.
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Market snapshot
CAC 40 slipped 0.33% to 8,300.34 points as of 08:16 GMT. DAX fell 0.29%, while the FTSE 100 was the only major index in the green, gaining 0.35%.
Broader European gauges also trended lower: EuroStoxx 50 –0.19%, FTSEurofirst 300 –0.11%, and Stoxx 600 –0.12%.
US jobs data on the radar
The U.S. Department of Labor will publish its monthly jobs report at 13:30 GMT. Forecasts point to the creation of roughly 70,000 jobs in January – a modest uptick from December. Any miss on the headline figure could dampen expectations for further Federal Reserve rate cuts, especially after the Fed signaled a possible pause in its tightening cycle.
Retail‑sales numbers released yesterday already pushed U.S. Treasury yields lower, hinting at a slowdown in the world’s biggest economy.
Deutsche Bank analysts say the data could reinforce “accommodative” arguments for additional rate reductions this year and even revive speculation that Chairman Jerome Powell might deliver one more cut before his May exit.
Corporate earnings weigh on sentiment
- Dassault Systèmes (DSY.PA) plunged more than 18% after steering guidance for 2026 fell short of expectations, becoming the worst‑performer on the CAC 40.
- TotalEnergies (TTE.PA) edged up 0.6% despite a decline in fourth‑quarter results.
- Siemens Energy (ENR.DE) rallied 5.25% following a Q1 profit that almost tripled year‑over‑year.
- LSEG (LSEG.L) jumped 7% after the Financial Times reported that activist investor Elliott had taken a “significant” stake.
With a packed earnings calendar, investors have a full day ahead as they digest both European results and the pivotal U.S. jobs report.