FTSE 100 down 0.12%; DAX up 0.17%; CAC 40 down 0.78% (Il Sole 24 Ore Radiocor) - Milan, 05 Sep - European shares were mixed in cautious midday trade as they steadied after this week's selloff.

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, in July 2024, seasonally adjusted retail trade volumes in the eurozone rose by 0.1% compared with the previous month while calendar adjusted retail sales were down by 0.1% compared with July 2023, according to data from European Union statistical office Eurostat.

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.

German economic research institute Ifo said in its autumn economic forecast that Germany's gross domestic product is expected to be flat this year, down from a projection of 0.4% growth in its previous estimate.

German GDP in 2025 is now seen rising 0.9%, down from prior expectations of 1.5% growth. According to the new forecast, Ifo now expects Germany's inflation rate to fall from 5.9% in 2023 to 2.2% this year, 2.0% in 2025 and 1.9% in 2026.

At 1100 GMT the London FTSE 100 was was down 0.12% at 8,259 points, the Frankfurt DAX was up 0.17% at 18,622 points, the Paris CAC 40 was down 0.78% at 7,442 points, while in Milan the FTSE MIB was up 0.21% at 33,753 points, and in Madrid the IBEX 35 was up 0.68% at 11,290 points.

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(RADIOCOR) 05-09-24 13:32:42 (0315) 5 NNNN