European Shares Inch Lower As Commodities Suffer

(RTTNews) - European stocks fell modestly on Friday, with mining and energy stocks bearing the brunt of the selling, as a surging dollar pulled down commodity prices. While oil prices fell around 1 percent, London copper is set for its largest weekly loss in 15 months.

All eyes are now on the U.S. jobs report due tonight, with economists expecting the non-farm payrolls report to show an increase of about 200,000 jobs in April, fewer than the 215,000 created in March. At the same time, the unemployment rate is expected to edge down to 4.9 percent from 5.0 percent.

There are fears that another solid jobs report may increase the potential of a rate hike at the next Fed meeting in June.

In an otherwise light day on the economic front, survey data from Markit Economics showed that German construction activity grew at the slowest pace in five months during April despite further gains in new business and employment amid stronger confidence among firms.

The pan-European Stoxx Europe 600 index was down 0.6 percent in midday trading after rising half a percent in the previous session. The German DAX was moving down 0.4 percent, France's CAC 40 was declining 0.8 percent and the U.K.'s FTSE 100 was down 0.6 percent.

ArcelorMittal shares fell over 4 percent in Paris. The world's largest steelmaker narrowed its net loss in the first quarter, but cautioned about excess steel capacity in China.

Anglo American, Antofagasta, Glencore, BHP Billiton and Rio Tinto lost 1-3 percent in London, while oil giant BP Plc declined 1 percent and Royal Dutch Shell shed 1.5 percent.

easyJet lost over 1 percent as the low-cost carrier reported a 0.4 percent decline in load factor - the ratio of passenger-kilometers travelled to seat-kilometers available - for April over last year.

InterContinental Hotels Group fell 1.5 percent on reporting a 1.5 percent rise in first-quarter global room revenue at constant exchange rates.

Man Group slumped more than 7 percent after Citigroup cut its rating on the stock.

Italian bank Monte dei Paschi climbed 4 percent after delivering better than expected Q1 results due to lower provisions for bad loans.

Rhoen-Klinikum shares dropped half a percent in Frankfurt, erasing early gains. The hospital operator expects a drop in revenues of roughly 1 percent for the current financial year due to regulatory restrictions.