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European stocks dropped, paring the Stoxx Europe 600 Index's fifth weekly gain, as Standard & Poor's cut France's credit rating and investors awaited data on American jobs. US index futures rose, while Asian shares fell.
Cie Financiere Richemont (CFR) SA fell 1.8 per cent after posting first-half operating profit that missed analysts' estimates. Telefonica SA slipped 1 per cent after reporting a 13 per cent slide in third-quarter profit before some items. International Consolidated Airlines Group SA rose after posting third-quarter profit that topped projections.
The Stoxx 600 lost 0.5 per cent to 321.71 at 8:08 am in London. The gauge closed little changed on Thursday as an interest-rate cut by the European Central Bank pointed to a weak regional economy and stronger US economic data fuelled speculation the Federal Reserve may reduce the pace of its bond buying soon. S&P 500 Index futures added 0.2 per cent on Friday, while the MSCI Asia Pacific Index slid 0.4 per cent.
France's long-term foreign and local-currency credit rating was lowered one step to AA from AA+ by S&P on Friday. The ratings company said slower growth will constrain the government's ability to improve public finances. The outlook is stable, S&P said.
In the US, a report at 8:30 am Washington time may show that employers in the world's largest economy added fewer workers in October and the jobless rate rose for the first time in five months. Payrolls increased by 120,000 last month following a 148,000 gain in September, according to the median forecast in a Bloomberg News survey. The unemployment rate climbed to 7.3 per cent from 7.2 per cent, economists projected.
Chinese trade
China's exports increased 5.6 per cent in October from a year earlier, data from the General Administration of Customs in Beijing showed. That beat a median estimate for 1.7 per cent growth in a Bloomberg News survey and September's unexpected decline of 0.3 per cent. Imports rose 7.6 per cent, leaving a trade surplus of $31.1 billion, the biggest this year. this year.
Richemont slid 1.8 per cent to 91.35 Swiss francs. The owner of the Cartier brand said operating profit dropped to euro 1.37 billion ($1.8 billion) in the six months through September. Analysts in a Bloomberg survey forecast euro 1.4 billion.
Telefonica lost 1 per cent to euro 12.22. Spain's largest phone company said third-quarter operating income before depreciation and amortization fell to euro 4.68 billion. Analysts projected euro 4.78 billion.
IAG gained 3.6 per cent to 361.4 pence after the parent of British Airways said third-quarter earnings more than doubled and raised its full-year outlook.
