The European markets fell for the third day on Friday, as banking stocks extended their losses on worries over fiscal woes in Greece, Spain and Portugal and commodity stocks slipped after crude oil and metals prices declined.
The Labor Department said in its report that non-farm payroll employment fell by 20,000 jobs in January following a revised decrease of 150,000 jobs in December. Economists had expected employment to edge up by 15,000 jobs compared to the loss of 85,000 jobs originally reported for the previous month.
The U.S. Labor Department also said that the unemployment rate unexpectedly fell to 9.7% in January from 10.0% in December. The decrease surprised economists, who had expected the unemployment rate to remain unchanged at 10.0%.
Crude for March delivery fell $2.54 to $70.60 a barrel on the New York Mercantile Exchange, by the time the European markets closed, hurt by a stronger dollar and persistent doubts about the health of the global economy.
The FTSEurofirst 300 index of pan-European blue chips closed 2.10% lower at 972.10 points, while the narrower DJ Stoxx 50 index fell 2.14% to 2,373.24 points.
Around Europe, the U.K.'s FTSE 100 index fell 1.53% to 5,060.92, while France's CAC 40 index dropped 3.40% to 3,563.76 and Germany's DAX index slipped 1.79% to 5,434.34.
Banking stock were among the biggest losers again. HSBC, Europe's largest bank, fell 1.2%, while BNP Paribas, France's largest bank, dropped 5.5% and Deutsche Bank, Germany's biggest lender, slipped 1.6%.
National Bank of Greece, the country's largest bank, slid 5.1%, while EFG Eurobank, the second biggest, slipped 6.3% and Piraeus Bank, the third biggest, fell 4.5%.
Heavily weighted oil stocks edged lower after crude oil prices declined. BP, Europe's biggest oil company, and Royal/Dutch Shell, the second biggest, both fell 0.9%, while Total, the third biggest, dropped 3.5%.
BG Group, Britain's third largest natural-gas producer, sank 3.2% after the company reported a 38% drop in fourth quarter profit
Mining stocks also fell after metals prices retreated. BHP Billiton, the world's biggest miner, declined 1.6% and Rio Tinto, the third biggest, dropped 1.9%.
Among individual stocks, ICAP, the world's biggest interdealer broker, tumbled 19.5% after the company lowered its full year profit outlook.
LVMH, the world's largest luxury-goods maker, slipped 4% after the company reported a 13% decline in full year profit.
On the other hand, BAE Systems, the world's second biggest defense contractor, rose 1.6% after the company said it has agreed to pay more than $400 million to settle corruption charges with Britain's Serious Fraud Office and U.S .Department of Justice.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.