Berliner Boersenzeitung - European stocks, dollar recover from US jobs disappointment

In Europe, investors awaited an expected interest-rate cut from the European Central Bank on Thursday.

The European Central Bank is set to cut eurozone borrowing costs once more as inflation in the single-currency bloc drifts back towards the ECB's two-percent target.

"Wage pressure has been a key driver of eurozone inflation this year, and now that it is retreating it could allow the ECB to embark on a prolonged rate-cutting cycle," said Kathleen Brooks, research director at trading platform XTB.

Global stocks markets slumped Friday following data showing weaker than expected US jobs growth, which raised concerns about the economy.

The data, however, raised expectations that the US Federal Reserve will cut interest rates next week after holding them at a 23-year high to tame inflation.

The highly anticipated non-farm payrolls report Friday showed an estimated 142,000 jobs were created in the United States last month, up on July but well off forecasts.

Traders have been on edge since July figures, which helped to spark a market rout on speculation that the Fed may have waited too long to cut borrowing costs as it focused on bringing down inflation.

Wall Street's three main indices tumbled Friday on the jobs update and pushed the dollar down against its main peers. The greenback recovered Monday.

Debate is centred on whether the Fed will reduce rates by 25 or 50 basis points.

"The report didn't suggest a severe downturn is imminent, but the softness in the numbers certainly point to an increase in the probability a recession could be on the cards," said Rodrigo Catril, currency strategist at National Australia Bank.

"The Fed may just cut by 25 basis points in September, but it will keep its options open for bigger cuts in November and or December, depending on how the data evolves from here."

A disappointing revenue forecast from US chipmaker Broadcom last week added to the negative sentiment, dealing another blow to a tech sector already under pressure over concerns a rally this year may have been overdone.

On Monday, shares in the Asian semiconductor sector fell, with Japan's Advantest and Tokyo Electron retreating, Taipei-listed chip titan TSMC diving more than two percent and South Korean group Samsung down a similar amount in Seoul.

A slight uptick in Chinese inflation did little to soothe worries about the world's number two economy, with the reading at a six-month high but missing forecasts.

Oil prices clawed back some of Friday's big losses sparked by demand concerns as the US outlook weakened.

The commodity was supported by news that OPEC and other key producers had delayed a planned output boost, analysts said.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.7 percent at 8,235.85 points

Paris - CAC 40: UP 0.7 percent at 7,402.08

Frankfurt - DAX: UP 0.6 percent at 18,411.38

Tokyo - Nikkei 225: DOWN 0.5 percent at 36,215.75 (close)

Hong Kong - Hang Seng Index: DOWN 1.4 percent at 17,196.96 (close)

Shanghai - Composite: DOWN 1.1 percent at 2,736.49 (close)

New York - Dow: DOWN 1.0 percent at 40,345.41 (close)

Euro/dollar: DOWN at $1.1043 from $1.1089 on Friday

Pound/dollar: DOWN at $1.3083 from $1.3132

Dollar/yen: UP at 143.69 yen from 142.29 yen

Euro/pound: UNCHANGED at 84.41 pence

Brent North Sea Crude: UP 0.8 percent at $71.59 per barrel

West Texas Intermediate: UP 0.9 percent at $68.26 per barrel

(A.Lehmann--BBZ)