By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets struggled for
direction on Tuesday, as investors opted to stay on the sidelines
ahead of the delayed U.S. nonfarm-payrolls report due later in the
day.
The Stoxx Europe 600 index was flat at around 319.55, after
closing in positive territory for an eighth straight day on
Monday.
Several Scandinavian firms were among biggest movers in the
pan-European index, with shares of Tele2 AB sinking 9.4% after the
Swedish telecoms firm said it swung to a loss in the third quarter
and cut its long-term financial guidance.
Swedbank AB climbed 4.9% after the bank posted an increase in
third-quarter profit, boosted by rising net interest-income. It
also said there are signs that the global economy is improving.
And in Oslo, Gjensidige Forsikring ASA rallied 7.7% after the
insurance firm posted a 6% rise in third-quarter earnings per
share.
More broadly, investors focused on the U.S. where the
nonfarm-payrolls data and unemployment rate for September were
slated to come out at 1:30 p.m. in London, or 8:30 a.m. Eastern
Time. The report was scheduled to come out at the beginning of
October, but was delayed due to the government shutdown last week.
Economists polled by MarketWatch expect 185,000 jobs were added to
the economy in September, while the joblessness rate is forecast to
remain at 7.3%.
"With the view that Fed tapering has been kicked in to the long
grass of next spring at the earliest firming up amongst market
participants, and the fact that this data is a bit stale, this is
one of the few occasions where a strong number won't do any damage
to the dovish monetary environment the bulls keep latching onto,"
said Jonathan Sudaria, dealer at London Capital Group, in a
note.
"Likewise, any weak figure could be shrugged off as focus would
move to the post-shutdown payrolls in three weeks for a more
accurate assessment of the economy," he added.
U.S. stock futures pointed to a flat open on Wall Street.
In Europe, France's CAC 40 index was slightly lower at 4,275.74,
while Germany's DAX 30 index fell 0.1% to 8,858.91.
The U.K.'s FTSE 100 index gained 0.1% to 6,663.11.
BHP Billiton PLC (BHP) climbed 2.7% in London after the miner
raised its outlook for full-year iron-ore production, signaling
confidence that China's rapid industrialization will continue to
lift demand for natural resources.
Shares of ARM Holdings PLC (ARMHY) dropped 3.8%, even as the
microchip designer posted a rise in third-quarter profit.
Outside the major indexes, shares of Novartis AG added 1.1%
after the drug maker raised its full-year outlook for the second
consecutive quarter after a generic version of its blockbuster
blood-pressure drug was delayed.
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