DAX, CAC, FTSE 100 – Chasing Early Wall Street Gains Ahead of US Non-Farm Payrolls Report

The major European stock markets are trading lower late in the session on Thursday as traders shrugged off the higher opening on Wall Street. The price action suggests that investors are tuned into Friday’s major U.S. Non-Farm Payrolls report rather than today’s U.S. Weekly Initial Claims data.

At 15:00 GMT, Germany’s DAX is trading at 15628, down 3.87 or -0.02%. The UK’s FTSE 100 is at 7890.59, down 39.33 or -0.50%, and France’s CAC 40 is trading at 7315.18, down 9.58 or -0.13%.

Most major sectors are in negative territory, with mining stocks posting the most significant losses, with a drop of about 1.9%.

Traders Digesting Powell Comments

European traders are digesting comments Federal Reserve Chairman Jerome Powell made earlier in the week. Powell warned U.S. lawmakers that the central bank might raise interest rates higher than anticipated. However, he added that he hasn’t decided what the central bank will do regarding interest rates when it meets later in March.

US Jobless Claims Data Rose More than Expected

U.S. investors received more news on the state of the labor market ahead of Friday’s closely watched non-farm payrolls report. Jobless claims for the week ended March 4 rose more than expected, signaling that the labor market may be slowing. U.S. markets rose on the news because it may mean the Fed will stick with their 25-basis point rate hike campaign rather than a 50-basis point hike as many investors fear.

European investors shrugged off the news, focusing on Friday’s NFP data.

In local news, Germany’s luxury fashion house Hugo Boss expects sales to slow to “a mid-single-digit percentage rate” this year amid “ongoing macroeconomic and geopolitical uncertainties.”

Sales jumped by 27% to top 3 billion Euros for the first time, coming in at 3.65 billion Euros for 2022.

The group expects its operating profit to rise by 5-12% in 2023, compared with the 47% jump in 2022. Hugo Boss sees capital expenditure reaching between 200 million Euros and 250 million Euros in 2023, versus 191 million Euros last year.

Daniel Grieder, who assumed the company’s leadership in June 2021, has led a rebranding of the fashion house that now focuses its Hugo and Boss collections on the Millennial and Gen-Z client base, respectively. The company launched its first-ever line of non-fungible tokens in October.

Stocks on the Move in France:  Dassault up 10%, LeG Immobilien Down 10%

Shares of Dassault Aviation were up 9.9% in early trading after the French company posted positive annual results.

Dassault’s adjusted net income was up almost 20% from the previous year, from 693 million Euros ($731 million) to 830 million.

The company expects lower sales overall in 2023 as the aviation industry continues to be affected by supply chain issues.

LEG Immobilien fell to the bottom of the blue-chip index in early trade after shares dropped 9.8% on news the company would be suspending its dividend.

The German property company announced as it released its full-year results. The company said the dividend money would instead be used to strengthen the company’s balance sheet.