BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening flat to slightly higher on Friday as traders await the U.S. monthly employment report for August later in the day for additional clues on the outlook for interest rates.
Economists expect employment to climb by 55,000 jobs in August after a decline of 23,000 jobs in July. The unemployment rate is expected to tick up to 4.2 percent from 4.1 percent.
Traders may also keep a close eye on the latest developments in the Middle East amid elevated concerns over supply disruptions.
Brent crude futures held steady at $95.60 a barrel but were up nearly 9 percent so far this week due to renewed U.S.-Iran hostilities.
Iran claimed to have conducted retaliatory strikes on U.S. bases in Kuwait and UAE for a second day in a row as U.S. President Donald Trump stated that Washington can attack Iran 'anytime we want.'
Iranian Vie President Mohammad Reza Aref said that Iran will adopt an 'asymmetric' and 'multi-layered' response to any future U.S. attacks and warned, 'Dark months await the American economy.'
Israeli Prime Minister Benjamin Netanyahu stated that toppling Iran's government is now a central Israeli objective and 'within reach.'
Asian markets followed Wall Street higher as concerns over U.S. interest-rate hikes eased.
The Japanese yen headed for its strongest week in a month as traders lifted bets on a Bank of Japan rate hike.
The U.S. dollar index slipped while gold was little changed around $4,470 an ounce.
U.S. stocks rose overnight while bond yields fell after Federal Reserve Governor Christopher Waller argued in favor of keeping rates unchanged at the upcoming policy meeting.
On the economic front, jobless claims rose marginally last week amid low layoffs, signaling a stable labor market. Growth in the services sector accelerated unexpectedly in August but rising input prices pointed to elevated inflation.
In geopolitical news, Vice President JD Vance ruled out talks with Iran until it stops attacking commercial shipping in the Strait of Hormuz, adding 'all options' remain on the table in dealing with Tehran.
The Dow jumped 1.2 percent, the tech-heavy Nasdaq Composite climbed 1.4 percent and the S&P 500 advanced 1.1 percent.
European stocks closed higher on Thursday after three straight sessions of losses.
The pan-European STOXX 600 gained half a percent as a global bond sell-off eased and the final PMI readings showed Eurozone business activity maintained steadier growth in August.
The German DAX surged 0.6 percent, France's CAC 40 inched up 0.1 percent and the U.K.'s FTSE 100 added 0.7 percent.
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