European markets close lower as investors react to US jobs data; oil stocks fall

Defensive sectors like healthcare and defensive regions like Switzerland are good bets, says the Credit Suisse wealth manager.

On Friday, Nannette Hechler-​Fayd’herbe, international wealth manager at Credit Suisse, discussed the markets on CNBC’s “Squawk Box Europe.”

Scandinavian fiber optic company Hexatronic led the gains in late morning trading, rising nearly 8% after news of its acquisition of telecommunications company KNET.

Swedish investment firm Kinnevik remained the worst performing European stock after a downgrade by analysts.

Energy firms also preempted potentially disruptive sanctions on Russian oil, and as OPEC considered further production cuts.

pipe supplier Tenaris was down 2.5%, BP fell 2.3% and Port energy down 2.1%.

—Jenni Reid

Shares of Swiss credit rose 6% after Chairman Axel Lehmann confirmed to Bloomberg that the bank was looking to accelerate its cost-cutting program.

This follows a Reuters report indicating that Credit Suisse may seek to cut more jobs than previously announced, citing unnamed sources.

The bank has previously said it wants to cut its cost base by 15%, or 2.5 billion Swiss francs ($2.67 billion), to around 14.5 billion Swiss francs. in 2025.

Lehmann said he would seek to “accelerate” the implementation of cost savings, which are part of a massive strategic overhaul. The bank has been embroiled in a series of scandals and in November announced a loss of 1.5 billion Swiss francs in the fourth quarter.

German exports fell 0.6% month on month in October, twice as much as forecast by analysts polled by Reuters.

However, the country’s trade surplus increased as imports fell by 3.7%, higher than the expected decline of 0.4%.

German officials said exports are expected to fall 2% next year due to slowing global growth, a weak business climate and continued challenges from inflation and supply chain lockdowns.

The country is widely expected to be headed for a recession, although recent data showing its economy grew by 0.4% quarter-on-quarter and 1.3% annually has fueled hopes that it will be little deep.

—Jenni Reid

Just eat was the best performer among generally bearish European stocks in early trading, gaining 3.7% after JPMorgan moved the stock from underweight to neutral.

A week ago, the company announced plans to revamp its operations, which could result in around 170 job cuts.

Meanwhile, the Swedish investment company Kinnevik lost 5.5% after being downgraded by Norwegian financial services group DNB, according to local media.

—Jenni Reid

European markets head for a lower open on Friday as investors eye an EU-led cap on Russian oil U.S. non-farm payroll and price data

The United Kingdom FTSE100 the index is expected to open 11 points lower at 7,547, the German DAX is seen down 15 points at 14,448, the French CAC is expected to open 15 points lower at 6,728 and the Italian FTSE MIB is also expected to fall 98 points at 24,609, according to data from IG.

Data releases include German import and export data, Eurozone producer prices and US non-farm payrolls, the latter due at 1:30 p.m. London time.

—Katrina Bishop

BlackRock’s ETF division says the investment environment has fundamentally changed, which has “profound implications” for future portfolios.

In its 2023 investor guide, Blackrock’s iShares, one of the world’s largest providers of exchange-traded funds, said the change has “profound implications for portfolio construction.”

CNBC Pro subscribers can learn more here.

—Weizhen Tan

Citi says investors don’t need to give up growth entirely by turning to a defensive portfolio of stocks ahead of a possible recession.

The investment bank named six global stocks that offer “low risk, quality and growth” combined.

CNBC Pro subscribers can learn more here.

—Ganesh Rao