Stocks fall for second consecutive day in Europe

European stocks tumbled for the second day on the trot on Friday (August 7th), as the market waited with bated breath for the release of US non-farm payrolls data, expected at 12:00 BST.

The report will provide investors with a barometer to gauge the likelihood of the Federal Reserve raising interest rates in September.

This morning, the Stoxx Europe 600 shaved 0.4 per cent to slide to 339.15, but is still on track for a weekly gain of 0.7 per cent.

The Athens Stock Exchange (ASE), which reopened on Monday after a five-week hiatus, regained 1.3 per cent, leaving its weekly loss at around 15 per cent. Piraeus Bank SA rose 4.9 per cent, after plummeting by 16.7 per cent at the start of the week.

Investors will be analysing the US payrolls data for any indicators that point to the Fed upping interest rates next month, with eyes likely to be searching for signs of stronger wage growth in July.

Projections suggest that the report will reveal employers hired 225,000 new workers, while the unemployment rate is expected to hold its seven-year low of 5.3 per cent.

Among European stocks, the Nordic region's biggest tyremaker downgraded its outlook following worse-than-expected profits and sales in the second quarter of 2015, leading it to slide 3.7 per cent.  

Italy's third-largest bank Banca Monte dei Paschi di Siena surged 7.8 per cent, as the lender - which has been bailed out twice since 2009 - returned to profit between April and June this year.

Over on the Emerald Isle, Allied Irish Banks added 1.2 per cent, on the back of the country’s largest state-owned lenders revealing first-half profit almost tripled compared to the same period in 2014, as it freed up cash earmarked for bad loans, while interest income increased.