European shares Fall Before US PMI And NFP

European shares fell on Friday, ahead of US employment data that could affect the Federal Reserve’s policy outlook, while fresh concerns about slowing Chinese growth took a toll on sentiment.

The pan-European Stoxx 600 index fell 0.2% but was on track for limited weekly gains.

Banks and financial services stocks, which are affected by interest rates, were among the biggest declining sectors, while investment group Ashmore Group plunged 3.9% after it announced full-year results.

A special survey showed that Chinese service sector activity contracted sharply in August, as restrictions imposed to curb the delta strain of the Coronavirus threaten to derail the economic recovery.

Data later today is likely to show that US employment growth slowed in August, adding to signs of an economic slowdown that could prompt the Federal Reserve to provide support for a longer period.

The final readings of the IHS Markit business activity index for August in the eurozone and the United Kingdom are also due to be released later today.