At 13:05 GMT, the pan European Stoxx 600 index was down 0.7% to 457.60. The U.K.'s FTSE 100 index fell 0.7% to 7,850.10. France's CAC40 index declined 1.27% to 5,366.25. Germany's DAX index dropped 0.83% to 15,347.85. Switzerland's Swiss Market index shed 0.5% to 11,293.65.
European markets started the new trading week on a negative note as strong U.S. employment data reinforced expectations the world's largest economy can withstand higher rates for longer this year. The Labor Department's closely watched monthly jobs report said non-farm payroll employment soared by 517,000 jobs in January after surging by an upwardly revised 260,000 jobs in December. The report also said the unemployment rate edged down to 3.4% in January from 3.5% in December.
Meanwhile, selloff pressure mounted as investors fretting about rising Sino-U.S. geopolitical tensions on news that the U.S. shot down a suspected Chinese spy balloon over the weekend. U.S. Secretary of State Anthony Blinken postponed his visit to Beijing in a sign of a potential re-escalation of tensions between the United States and China after the U.S. military shot down a suspected surveillance balloon from China. China said it was a stray civilian vessel blown off course, and has vowed to retaliate.
The US has recently moved to limit China's access to advanced semiconductor technology by restricting US companies from exporting their hi-tech goods to mainland China. It has also roped in allies Japan and the Netherlands to restrict the sale of advanced equipment.
ECONOMIC NEWS: German industrial orders rose in December, increasing by 3.2% on the month in December, a substantial rebound from the upwardly revised drop of 4.4% in November.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
