- Investors turn to US payroll figures
- German industrial output falls
- French consumer confidence rises
- Ireland may need bailout, says Finance Minister
- G20 leaders divided on Syria
FTSE 100: -0.11%
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FTSE MIBL -0.2
IBEX 35: 0.20%
Stoxx 600: -0.08
European stocks were mixed before the release of US payroll figures and after a report showed an unexpected drop in German industrial production.
The US jobs report is expected to show employers increased payrolls by 180,000 in August, compared with 162,000 in July. The unemployment rate is forecast to remain unchanged at 7.4%.
The monthly jobs data is deemed an important indicator over whether the US is ready for a reduction of stimulus measures.
Economists are split on whether the central bank will begin scaling back its $85bn per month in bond purchases at its September 17th-18th policy meeting.
"Potential Fed tapering dominates the narrative with investors looking to the US monthly jobs report as the crucial tell-tale indicator to second guess the Fed's possible move at the September policy meeting," said Ishaq Siddiqi, Market Strategist at ETX Capital.
In Europe, German industrial production fell 1.7% in July from June when it rose a revised 2%, the Economy Ministry in Berlin revealed. Economists had predicted a decline of 0.5% in Europe's largest economy.
German manufacturing output decreased 2.1% in July while construction rose 2.7%, the report also showed.
In France, consumer confidence rose to 84 in August from 82 in July, a touch above market estimates.
Ireland may need €10bn bailout
Ireland may need a €10bn bailout to help smooth the transition on its exit from the bailout, according to Irish Finance Minister Michael Noon.
Noon told the Irish Independent that they may need a €10bn (£8.4bn) safety net in the form of a credit line that would only be used in an emergency situation.
"The plan is to never have to use the cash, but the sum involved would be enough to cover all of next year's expected shortfall in government spending in the event of some unforeseen crisis," the paper reported.
G20 leaders lay off Europe debt crisis
European leaders were given some breathing space over its debt crisis at the Group of 20 (G20) summit in Russia as troubles in emerging nations took centre stage.
Europe's economic crisis and its impact on financial markets have dominated previous meetings in Los Cabos, Cannes, Seoul and Toronto since 2010. However with signs of growth in the euro-area, the attention turned to emerging markets, particularly uncertainty in India and Brazil.
"I want to tell you, at this G20 we were no longer the focus of attention," said European Commission President Jose Manuel Barroso.
"On the contrary, the words we have received were words of sincere appreciation for our efforts, recognising that they are starting to bear fruit."
The summit also addressed concerns over Syria, with G20 leaders divided on US President Barack Obama's proposal for military action.
The US has accused President Bashar Hafez al-Assad's government of using chemical weapons against civilians on August 21st but Assad denies the attack. Congress is due to vote on whether to take action next week.
Chinese and Italian officials at the G20 warned that military intervention would risk hurting the economy and a spokesperson for the Russian presidency said a US military strike on Syria would "drive another nail into the coffin of international law".
Brent crude rises
Brent crude futures rose 0.165 to 115.450 per barrel on the ICE as the G20 failed to make headway on reaching a consensus on Syria.
The euro fell 0.08% to the 1.3109 US dollar.