Europe midday: Markets in holding pattern ahead of US jobs report

Markets are in a holding pattern ahead of the key US monthly jobs report due out at 1330 BST.

As of 1145 BST the benchmark Stoxx 600 is lower by 0.12% to 391.51, alongside a drop of 0.36% in the German Dax and the FTSE Mibtel edging higher by 0.02% to 21,117.04.

Following the Federal Reserve's policy meeting two days before market financial markets moved to price-in a near certain interest rate hike at the FOMC's next meeting in June.

Hence, any negative surprise on the jobs front might hit markets especially hard.

Nonetheless, news overnight that the White House had managed to secure passage of its healthcare reform bill in the lower House of the US Congress - a possible prerequisite for any future tax reform plans was buoying sentiment too - to an extent.

"Negative sentiment has perhaps been tempered by Trump claiming a small victory in getting his healthcare bill through the House of Representatives (just; tight vote). While this is a step towards tax reform and other stimulus, Senate approval is sure to prove tricky and could prove a bridge too far in terms of concrete legislative approval for the new President," said Mike van Dulken, Head of Research at Accendo Markets.

Acting as a backdrop, also overnight Brent crude oil futures extended their recent move lower, hitting a key level of technical support towards $46.64 per barrel on the ICE. Yet by noon they were bouncing back to trade at $48.55.

Analysts at VTB Capital attributed the move lower to remarks from Russian president Vladimir Putin's press secretary Dmitry Peskov that the Kremlin has yet to decide whether to extend the 30 November OPEC pact for a coordinated reduction in output.

"Yet, as is often the case, this seems to be the proverbial last straw. The relentless growth of US crude production, as well as signs that monetary tightening in China is starting to take toll on growth there, means that a simple extension of the 30 November production cuts is unlikely to be sufficient to keep the oil market in balance in 2H17," they said.

The US non-farm jobs report for Aoril was set for release at 1330 GMT, with the consensus calling for 175,000 jobs to be added in April following a disappointing 98,000 in March.

In Europe, Spanish industrial production shrank by 0.4% month-on-month in March (consensus: 0.3%), according to INE.

Ratings agency S&P is set to publish the results of its review of Italy's sovereign long-term debt after the close of trading in London.

Meanwhile, on the corporate front, France's Vivendi clinched an extension of the rights to broadcast Formula 1.

Germany's Heidelberger Drucksmachinen is down by 1.8% after reporting annual net profits of €36.0m.