European Shares Seen Lower Amid China’s Property Woes

European stocks look set to open on a subdued note Friday as focus shifts to China’s property sector woes.

Jitters over troubles in Chinese property sector flared after Kaisa Group Holdings Ltd and three of its units had their shares suspended.

Kaisa said on Thursday its finance unit had missed a payment on wealth management products it guaranteed, the latest sign of stress in the nation’s beleaguered real estate industry.

Meanwhile, China’s latest Covid-19 outbreak continues to grow as it shifts east through the nation’s rust belt, prompting officials to implement increasingly stringent prevention measures.

Asian markets traded mixed as investors await the latest U.S. jobs report, which could change the timing of Federal Reserve interest rate hikes.

Employment is expected to jump by 425,000 jobs in October after an increase of 194,000 jobs in September. The unemployment rate is expected to edge down to 4.7 percent from 4.8 percent.

Closer home, industrial production data from Germany and retail sales figures from euro area are due later in the session, headlining a light day for the European economic news.

The dollar slipped, but was on track for a second weekly gain. Gold gained ground and was set for a weekly gain, while oil staged a partial recovery after OPEC and its allies agreed to stick to plans to raise oil output by 400000 barrels per day (bpd) from December, as widely expected.

U.S. stocks ended broadly higher overnight, with another batch of upbeat earnings news and encouraging jobless claims data helping generate buying interest.

The S&P 500 rose 0.4 percent and the tech-heavy Nasdaq Composite added 0.8 percent to reach new record closing highs, while the Dow ended marginally lower.

European stocks rose on Thursday after the Federal Reserve signaled “patience” in raising interest rates and the Bank of England held rates at record low levels, pushing back against rate hike expectations.

The pan European Stoxx 600 rose 0.4 percent. The German DAX and the U.K.’s FTSE 100 both inched up around 0.4 percent while France’s CAC 40 index gained half a percent.

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