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European stocks close higher after key U.S. jobs report; Anglo American down 19%

Elliot Smith

This is CNBC's live blog covering European markets.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, December 6, 2023. 
Staff | Reuters

LONDON — European markets held in positive territory on Friday, as traders around the world assessed a key November jobs report out of the U.S.

European markets


The pan-European Stoxx 600 index closed up 0.7%. Travel and leisure stocks added 1.5% to lead gains while mining stocks fell 2.3%.

Global mining company Anglo American ended the session at the bottom of the European benchmark, down 19%, after announcing a plan to cut its capital expenditure amid a fall in metal demand.

Global attention turned on Friday to November's U.S. jobs report, as investors try to gauge the likely trajectory of interest rate decisions from the Federal Reserve over the next year.

November's nonfarm payrolls report showed an unexpected drop in unemployment. The jobless rate fell 3.7%, compared to a forecast of 3.9%. The U.S. economy added 199,000 jobs during November, slightly ahead of the 190,000 estimate from Dow Jones and the 150,000 added in October.

U.S. stocks rose slightly on Friday. Markets in Asia-Pacific were mixed overnight after a surprise downward revision of Japan's third-quarter gross domestic product, while India's central bank held its benchmark lending rate steady.

U.S. stocks open lower

U.S. stocks opened lower Friday as investors assessed a strong jobs report that left them torn between hopes for a resilient economy and expectations for Federal Reserve rate cuts in the new year.

The Dow Jones Industrial Average fell 0.1% at the start of the trading day. The S&P 500 and the Nasdaq Composite also both dipped 0.2% and 0.3%, respectively.

— Karen Gilchrist

Dow futures fall 100 points as Treasury yields jump after jobs report

U.S. stock futures fell in premarket trade on Friday as Treasury yields popped after November's nonfarm payrolls report showed an unexpected drop in unemployment.

The jobless rate fell 3.7%, compared to a forecast of 3.9%. The economy added 199,000 jobs during November, slightly ahead of the 190,000 estimate from Dow Jones and the 150,000 added in October.

- Elliot Smith

Stocks on the move: Anglo American down 13%, AMS-Osram up 6%,

Anglo American shares plunged more than 13% by mid-afternoon after the global mining company announced plans to cut capital expenditure by $1.8 billion by 2026, amid a fall in metal demand and a substantial writedown for a British fertilizer project.

At the top of the Stoxx 600, Austrian sensors and lighting company AMS-Osram jumped more than 6% after announcing high take-up on an $876 million rights issue.

- Elliot Smith

An employee puts gold bullions into a safe deposit box at Degussa shop in Singapore
Edgar Su | Reuters

Gold prices hit another record high this week after a roaring 2023, and a combination of geopolitical tensions and continued central bank buying should see demand remain resilient next year, according to the World Gold Council.

WGC Chief Market Strategist John Reade told CNBC on Thursday that gold prices would likely remain range-bound but choppy next year. He expects them to react to individual economic data points that inform the likely trajectory of Fed policy until the first interest rate cut is in the bag.

Read the full story here.

- Elliot Smith

Barclays Private Bank: U.S. payroll expectations 'skewed to the downside'

The headquarters of Barclays Plc beyond the West India Quay Docklands Light Railway station in the Canary Wharf financial district in London, UK, on Monday, March 20, 2023.
Bloomberg | Bloomberg | Getty Images

Recent data suggests that the U.S. labor market is softening, and expectations ahead of Friday's crucial nonfarm payrolls figure are "skewed to the downside," according to Julien Lafargue, chief market strategist at Barclays Private Bank.

"A significant positive surprise would challenge the market's consensus that interest rate cuts will materialise around the beginning of Q2 2024," Lafargue said.

"On the other hand, a significant disappointment could force the market to reassess its soft landing scenario. A number broadly in line with expectations would, in our view, probably be the most supportive outcome for stocks."

- Elliot Smith

Stocks on the move: Nordic Semiconductor up 5%, Anglo American down 5%

Anglo American shares dropped 5% in early trade after the global mining company announced plans to cut capital expenditure by $1.8 billion by 2026, amid a fall in metal demand and a substantial writedown for a British fertilizer project.

At the top of the Stoxx 600, Nordic Semiconductor shares added 5%.

- Elliot Smith

European stocks make a muted start

European markets were little changed at Friday's open.

The pan-European Stoxx 600 index hovered around the flatline in early trade, with mining stocks dropping 0.6% while oil and gas climbed 0.5%.

Here are the opening calls

Britain's FTSE 100 is seen around 18 points higher at 7,532, while Germany's DAX is set to add roughly 28 point to 16,657, and France's CAC 40 is expected to gain around 11 points to 7,440, according to IG data.

CNBC Pro: These global stocks may be overbought, but analysts still like them — giving one nearly 40% upside

U.S. stocks aren't they only ones doing well — global markets have also rallied in the past month.

CNBC Pro screened the S&P 500, the MSCI World and the Vanguard FTSE-All World ex-U.S. indexes for stocks that are among the most overbought, based on their 14-day RSI. 

Stocks with a 14-day RSI higher than 70 are likely overbought — and may be due for a pullback. 

These stocks have also been screened to include analyst buy ratings of more than 50%, and with potential price target upside of more than 20%.

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: Forget the automakers: Fund manager picks 2 longer-term plays to cash in on EVs

EV automakers like Tesla, BYD and BMW have garnered a lot of attention from investors this year.

However, one investment analyst says a better way to play the electric vehicle theme is to invest in the wider ecosystem.

"We like autos but the problem with pure EV companies is there's few that's profitable and cashflow generative at the moment," Steven Glass, managing director and investment analyst at the Australia-headquartered Pella Funds told CNBC Pro, referencing Tesla as one such company.

He named two alternative EV-rated stocks that are on his radar.

CNBC Pro subscribers can read more here.

— Amala Balakrishner