FTSE 100 down 0.47%; DAX down 0.27%; CAC 40 down 0.21% (Il Sole 24 Ore Radiocor) - Milan, 03 Sep - European shares erased earlier gains and were moderately lower in cautious middy trade, with the Stoxx 600 index down 0.39%.

At 1105 GMT the London FTSE 100 was was down 0.47% at 8,324 points, the Frankfurt DAX was down 0.27% at 18,7873 points, the Paris CAC 40 down 0.21% at 7,630 points, while in Milan the FTSE MIB was down 0.58% at 34,121 points, and in Madrid the IBEX 35 was down 0.67% at 11,319 points. Investors remained on the sidelines as they looked for fresh direction, pondering the outlook for interest rates.

The markets have priced for the Federal Reserve to begin interest rate cuts this month, with the US central bank seen slashing rates by 25 or 50 basis points at its next meeting on September 17-18.

Investors however braced for a string of key US economic data that could influence the Fed's decision.

The US ISM manufacturing survey is due later in the day and the closely watched US jobs report is due on Friday.

Back in the region, data showed yesterday that eurozone factories remained stuck in a rut last month, with the eurozone's purchasing managers' index for the manufacturing sector standing in August at 45.8, unchanged compared to July, according to final data released by S&P Global and Hamburg Commercial Bank.

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(RADIOCOR) 03-09-24 13:32:38 (0290) 5 NNNN