European Stocks Are Little Changed Before U.S. Jobs Data

By Jonathan Morgan

European stocks were little changed as investors awaited a report on U.S. jobs and Italy cut its economic-growth forecasts. U.S. index futures were also little changed, while Asian shares fell.
Orange (ORA) SA retreated 2.8 percent as Bpifrance is selling a stake in the phone company for as much as 595 million euros ($750 million). Afren Plc gained 3.2 percent after saying that an independent review didn’t disclose more improper transactions beyond the ones being investigated.
The Stoxx 600 Europe Index fell less than 0.1 percent to 343 at 8:11 a.m. in London. The gauge rose 0.6 percent yesterday, completing its
fifth quarter of gains that was the longest streak since 2006, amid optimism the European Central Bank will step up stimulus measures even as the Federal Reserve winds down its program. Standard & Poor’s 500 Index futures slipped less than 0.1 percent today, while the MSCI Asia Pacific Index lost 0.4 percent.
In the U.S., a report from the Roseland, New Jersey-based ADP Research Institute may show that U.S. companies hired 205,000 workers in September, more than the 204,000 in August, economists surveyed by Bloomberg News predicted. That would be the first gain in three months. Separate data may show that manufacturing in the world’s largest economy continued to expand last month.

Italy, France

The Italian government said the country’s gross domestic product will shrink 0.3 percent this year, compared with its April prediction of an increase of 0.8 percent. It also forecast a slower-than-expected recovery in 2015, with GDP expanding 0.6 percent compared with a previous estimate of 1.3 percent.
In France, the government will delay a goal to reduce its budget deficit to 3 percent of GDP until 2017 because of low growth and low inflation, Les Echos reported. The country will have to ask the European Union for a third delay in meeting its deficit targets, the paper said.
Orange lost 2.8 percent to 11.58 euros. Bpifrance offered the phone company’s shares at 11.60 euros to market price, according to a person familiar with the matter. The French state-owned investment bank is selling 50 million shares, cutting its holding in Orange to 11.6 percent from 13.5 percent.
Afren gained 3.2 percent to 106.8 pence. The U.K. explorer in Nigeria that suspended its chief executive officer and is probing three unauthorized payments to partners said an independent review by Willkie Farr & Gallagher LLP hasn’t found more improper payments. Afren (AFR)’s board expects a detailed report to be delivered this month.