European stocks calm as US readies for 4th of July

(TOKYO) European stock markets traded in a narrow range Friday as investors caught their breath after big losses the day before on U.S. jobs data. Wall Street's closure for the Independence Day holiday kept trading volumes exceptionally light.

The FTSE 100 index of leading British shares closed up 2.01 points, or 0.1 percent, at 4,236.28, while Germany's DAX fell 10.28 points, or 0.2 percent, to 4,708.21. The CAC-40 in France was 3.10 points, or 0.1 percent, higher at 3,119.51.

Earlier, Asian markets mostly fell but the losses were tame compared to those recorded on Wall Street on Thursday after the payrolls data, which showed U.S. employers slashed 467,000 jobs in June — 100,000 more than anticipated.

That was also the first increase in monthly jobs losses since January.

"Yesterday's U.S. jobs data contained plenty of bad news and put a big question mark over the 'green shoot' thesis that we are through the worst and that economic recovery is around the corner," said Neil Mackinnon, chief economist at ECU Group.

Equities rose from the middle of March until the start of June on hopes that the U.S. economy in particular will recover from recession sooner than anticipated. Many investors saw stock valuations as particularly cheap and started buying. But bad economic news over the last few weeks brought an abrupt end to the rally and altered the general mood prevailing among investors.