FTSE 100 up 0.07%; DAX up 0.17%; CAC 40 down 0.20% (Il Sole 24 Ore Radiocor) - Milan, 05 Sep - European shares opened lower and were flat to slightly higher in cautious early trade as they staged a tentative rebound from this week's losses.

The region's stock markets closed last week at a record high.

Caution prevailed as concerns about the US economy fuelled expectations that the Federal Reserve may opt for significant rate cuts.

Investors braced for the closely watched US jobs report due on Friday, that could influence the US Federal Reserve's interest rate decision.

Currently, markets are pricing in a 44% probability of a 50 basis point rate cut at the Fed's September 17-18 meeting, up from 38% the previous day, according to the CME FedWatch tool. Traders are also anticipating a total of 110 basis points in rate cuts by year-end, with three Fed meetings remaining.

This shift in expectations follows Wednesday's data showing US job openings had dropped to a three-and-a-half-year low in July, signaling a cooling labor market. Also pointing to a slowdown in the world's biggest economy, US manufacturing data released on Tuesday showed that economic activity in the US manufacturing sector contracted in August for the fifth consecutive month and the 21st time in the last 22 months, missing expectations.

Back in the region, German industrial orders unexpectedly rose in July due to large scale orders.

In July, German new manufacturing orders in real terms rose 2.9% on the previous month on a seasonally and calendar adjusted basis and grew 3.7% from a year earlier on a calendar adjusted basis, according to preliminary data released by the statistics office Destatis. In June, new manufacturing orders rose 4.6% on the previous month and fell 11.2% year on year. The monthly figure for June was revised up from a 3.9% increase.

In European stock market dealings most sectors were lower, with chemicals stocks among the biggest decliners.

Auto and banking shares also were among the biggest decliners.

At 0728 GMT the London FTSE 100 was was up 0.07% at 8,275 points, the Frankfurt DAX was up 0.17% at 18,622 points, the Paris CAC 40 was down 0.20% at 7,486 points, while in Milan the FTSE MIB was up 0.15% at 33,732 points, and in Madrid the IBEX 35 was up 0.26% at 11,242 points.

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(RADIOCOR) 05-09-24 09:44:42 (0194) 5 NNNN