VIENNA (dpa-AFX) - European stocks are likely to open a tad higher on Friday after U.S. stocks recovered from earlier losses to finish mostly higher overnight, led by technology stocks.
That said, underlying sentiment may remain cautious as investors await the all-important U.S. jobs report due tonight, that will have a direct bearing on the Fed's decision at the policy meeting, scheduled for September 20 and 21.
The report is likely to show an increase of about 175,000 jobs in August after the July report smashed expectations, creating a net 255,000 new jobs since June. The unemployment rate is expected to edge down to 4.8 percent from 4.9 percent.
Today's European economic calendar remains light, with investors awaiting U.K. construction PMI data and Eurozone produce price data later in the day for further direction.
Across the Atlantic, the monthly jobs report is likely to overshadow separate reports on international trade and factory orders, going into the Labor Day holiday weekend.
Meanwhile, in a briefing note prepared for the upcoming G20 summit in Hangzhou, China, International Monetary Fund Managing Director Christine Lagarde said that low growth, high inequality, and slow progress on structural reforms are among the key issues that G20 leaders will discuss at their meeting this weekend. She also indicated that the institution will probably revise down its 2016 global growth forecast again.
Asian shares cut early losses in cautious trade, as the Japanese yen weakened and oil rose after losses of more than 3 percent overnight on signs of inventory builds and doubts over potential OPEC action to cut production.
European shares closed firmly in negative territory on Thursday, as oil prices slumped again and a key indicator of U.S. manufacturing disappointed investors.
The pan-European Stoxx Europe 600 index and France's CAC 40 ended roughly flat, while the German DAX slid 0.6 percent and the U.K.'s FTSE 100 dropped half a percent.
Copyright RTT News/dpa-AFX
© 2016 AFX News
