Europe: Equity markets subdued at open

[LONDON] Europe's stock markets opened on a subdued note on Friday as dealers awaited critical US jobs data and mulled the US Federal Reserve's readiness to hike interest rates aggressively.

London's benchmark FTSE 100 index was only marginally lower at 7,448.68 points, compared with Thursday's closing level.

In the eurozone, Frankfurt's DAX index shed 0.4 per cent to 15,994.09 points and the Paris CAC 40 lost just under 0.1 per cent to 7,245.41.

"Investors remain apprehensive following the Federal Reserve's move to a more hawkish stance, with the jobs report later providing further colour to the economic backdrop," said Richard Hunter, head of markets at Interactive Investor.

Asian bourses were mixed Friday after this week's volatile start to the new year, with the release of US payrolls data taking centre stage.

News that the Fed is planning a more aggressive campaign to fight surging inflation has rattled global traders, who have enjoyed almost two years of cheap cash that has helped push some markets to record or multi-year highs.

Minutes from the Fed's December policy meeting showed that officials signalled a more aggressive rate-tightening path than previously flagged, arguing "it may become warranted to increase the federal funds rate sooner or at a faster pace than participants had earlier anticipated." There were also indications officials were considering reducing its massive bond holdings, putting further upward pressure on lending costs.

AFP