Summary US labour market showed solid growth, making it likely that FR could raise interest rates
LONDON (AFP) - Europe s main stock markets edged down on Friday as investors digested disappointing data out of the eurozone, a mixed US jobs report and the likelihood of an imminent US interest rate rise.
"Disappointing French and German industrial production figures, posted before European markets started trading, have ensured a dominance of red on trading screens," said Alastair McCaig, market analyst at IG trading group.
Later Friday trading was impacted by US jobs data for July, which showed the economy adding slightly fewer jobs than expected, with unemployment holding steady at 5.3 percent.
The overall US labour market, however, showed solid growth, making it likely that the Federal Reserve could raise interest rates as early as September, dealers said.
London s FTSE 100 index finished down 0.42 percent at 6,718.49 points compared with Thursday s close.
In the eurozone, Frankfurt s DAX 30 ended the day 0.81 percent lower at 11,490.83 points, while the CAC 40 in Paris dipped 0.72 percent to 5,154.75.
And after losing nearly 20 percent in the first three days of the trading week following a five-week closure, Greece s ATHEX index finished 3.65 percent higher on Thursday and rose again by 1.45 percent on Friday.
The euro rose to $1.0957 from $1.0923 late in New York on Thursday.
- Healthy rise in payrolls -
The contrasting numbers in the new US labour statistics showed a July jobs gain of 215,000 -- a bit below the 229,000 projected by analysts, but accompanied by an upgraded estimate for June to 231,000 from 223,000.
US businesses have now added 13 million jobs over 65 months of growth -- extending the longest streak on record.
"July s US jobs report showed another healthy rise in payrolls and suggests that the Fed is still likely to begin raising interest rates in September," said analyst Michael Pearce at Capital Economics.
"There are some openings to pick holes in this (jobs) report," added Briefing.com analyst Patrick O Hare, who nonetheless expects the US Federal Reserve to lift interest rates soon.
Investors on Wall Street were also torn on the jobs report and rates outlook, with the Dow Jones Industrial Average down 0.64 percent at 17,307.74 points around mid-day in New York.
The broad-based S&P 500 dropped 0.61 percent to 2,070.79, while the tech-rich Nasdaq Composite Index fell 0.85 percent to 5,013.62.
Back in Europe, official data showed Germany s industrial output fell 1.4 percent and exports from the continent s top economy dropped by one percent in June from the previous month.
Many German companies are struggling with China s slowdown and recent volatility over the Greek debt crisis, despite the benefits of a low euro, cheap oil and rock-bottom interest rates.
Asian stock markets ended mixed on Friday as investors awaited the US jobs figures and after the Bank of Japan held fire on a fresh round of stimulus.
After a two-day meeting, the Bank of Japan held off fresh easing measures, saying the world s number three economy was steadily recovering. Analysts widely expect policymakers to act later in the year.
Tokyo capped a second weekly advance to end 0.29 percent higher. Sydney fell sharply, losing 2.41 percent, and Seoul closed 0.15 percent lower.
Hong Kong and China shares rebounded after the previous day s losses, with the Hang Seng Index closing up 0.73 percent, while Shanghai ended the day 2.26 percent higher.
