European markets close lower after key U.S. jobs report; Credit Suisse jump 5%

Shares of beleaguered Credit Suisse jumped 6% in afternoon deals Friday on the back of news that it had offered to buy back up to 3 billion Swiss francs ($3.03 billion) of debt securities.

It comes after the Swiss bank’s shares briefly hit an all-time low earlier this week, and credit default swaps reached a record high.

—Karen Gilchrist

German electronics company ams Osram continued its slide in afternoon deals, slumping 9.7% to hit the bottom of the Stoxx 600.

Shares of French car manufacturer Renault, meanwhile, jumped 6.2% on news of progress in an intellectual property dispute with Nissan.

— Karen Gilchrist

U.S. stocks opened lower Friday as Wall Street digested September’s jobs report.

The Dow Jones Industrial Average was down 1% in early deals while the S&P 500 was 1.3% lower. The Nasdaq Composite slid 1.75% after a stronger-than-expected employment data pointed to further interest rate hikes.

— Karen Gilchrist

Friday’s nonfarm payrolls report showed the U.S. economy added 263,000 jobs in September, slightly below a consensus forecast of 275,000 from economists polled by Dow Jones.

However, the unemployment rate slid to 3.5% from 3.7% in August, signaling a strengthening jobs market even as the U.S. Federal Reserve hikes interest rates in order to cool the economy and stem inflation.

The reading will increase bets on a more aggressive monetary policy tightening trajectory ahead of the Fed’s next meeting in November. U.S. Treasury yields jumped following the data release.

“It’s unlikely that the Fed can lower job openings without raising the unemployment rate against the backdrop of high inflation, fading profit margins, and rising interest rates,” said Richard Flynn, managing director at Charles Schwab U.K.

“The Fed has been increasingly clear that substantial weakness in the economy may be the expense for a return to lower inflation. As rate hikes feed through to the real economy in the months ahead, the labour market may weaken further, reflecting investors’ recessionary concerns.”

– Elliot Smith

The Kremlin behaved “like a drug dealer,” Poland’s Prime Minister Mateusz Morawiecki told CNBC’s Charlotte Reed in an exclusive interview.

“Initially the gas [from Russia] was supposed to be very cheap, but the real price of the gas we now know. The real price of the gas is also the blood of soldiers and people, children and women in Ukraine and the real price of gas is the current harsh winter coming in Europe,” he said.

The Polish leader made the comments in Prague as 44 European leaders met to discuss the war in Ukraine and Europe’s energy crisis. It is the first meeting of a new group called the European Political Community.

— Hannah Ward-Glenton

Renault shares gained 4.1% in early trade to lead the Stoxx 600, while at the bottom of the index, electronics company ams Osram fell 4.7%.

Oil is in a bull market that’s going to last for at least six years, according to fund manager Eric Nuttall.

The partner and senior portfolio manager at Ninepoint Partners, which manages more than $8 billion in assets, named three stocks for investors to cash in.

Pro subscribers can read more here.

— Zavier Ong

German industrial output declined in August, the country’s Federal Statistical Office revealed Friday, as supply bottlenecks persisted due to the war in Ukraine and lingering pandemic-related distortions.

Industrial production dropped by 0.8% month-on-month, below expectations for a 0.5% decline among analysts polled by Reuters.

However, July’s monthly figure was revised up to 0% from its previous -0.3%.

– Elliot Smith

Troubled bank Credit Suisse offered to buy back up to 3 billion Swiss francs ($3.03 billion) of debt securities Friday, as it navigates a plunging share price and a rise in bets against its debt.

The Swiss lender also confirmed that it is selling its famous Savoy Hotel in Zurich’s financial district, prompting some speculation that it is scrambling for liquidity.

In a statement Friday regarding the offer to repurchase debt securities, Credit Suisse said: “The transactions are consistent with our proactive approach to managing our overall liability composition and optimizing interest expense and allow us to take advantage of market conditions to repurchase debt at attractive prices.”

Read the full story here.

Britain’s FTSE 100 is seen around 20 points lower at 6,977, Germany’s DAX is set to shed around 64 points to 12,407 and France’s CAC 40 is set to slip by around 18 points to 5,918.

— Elliot Smith