European Stocks Slightly Lower Amid Delta Variant Concerns... Caution Ahead of ECB Meeting

Euro Stoxx 50 Slightly Weak
UK, France, Germany Similar

European Economic Indicators Weaker Than Expected
Sentiment Declines... US Employment Weak
China's August Exports Up 25.6%

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cha Min-young] European stock markets are showing a slight decline as investors adopt a cautious stance ahead of the European Central Bank (ECB) meeting scheduled for the 9th (local time). While economic indicators from the US and the UK have been weak, China's economy has shown strength, leading to expectations that the ECB will take a hawkish stance.

As of 9:48 PM on the 7th (Korean time), the Euro Stoxx 50 index was down 0.21% from the previous close, standing at 4237.29. At the same time, the UK FTSE 100 index fell 0.17% to 7174.75, the French CAC 40 index dropped 0.05% to 5740.31, and the German DAX index declined 0.21% to 15,898.70.

Economic indicators within Europe were weaker than expected. According to Germany's September economic sentiment survey, the investor sentiment index fell from 40.4 in August to 26.5, which is below the market forecast of 30.0.

US employment data for August also disappointed the market by falling short of expectations, particularly raising concerns about the spread of COVID-19 and the Delta variant. The US Department of Labor reported that nonfarm payrolls increased by 235,000 in August, marking the lowest figure in seven months and significantly below Dow Jones' forecast of 720,000.

On the other hand, Asian economic indicators improved. Recently released data showed that China's August exports increased by 25.6% year-on-year, surpassing market expectations. Thanks to robust global demand, China's export growth in August was stronger than anticipated.

CNBC noted, "With Eurozone inflation surging recently and economic indicators rising, market watchers expect the ECB to adopt a more hawkish tone on Thursday."

This content was produced with the assistance of AI translation services.