Europe midday: Shares mixed ahead of US payrolls data

European shares were mixed on Friday as investors eyed monthly US jobs data later in the day and political developments in London after the ill-tempered resignation, but not departure, of UK Prime Minister Boris Johnson.

The pan-regional Stoxx 600 index had was up 0.4% after solid rises over the previous two days.

Continental markets were mixed, with the UK’s FTSE down0.44% after Boris Johnson resigned as Conservative Party leader but refused to leave as prime minister following a string of scandals and allegations of cronyism that finally forced ministers to revolt.

Market sentiment was also hit by the shooting of former Japanese Prime Minister Shinzo Abe was shot while campaigning for a parliamentary election.

US non-farm payrolls report are due at 1230 GMT and forecast to show jobs growth slowed in June and the unemployment rate unchanged at 3.6%. Economists are looking for a rise of 268,000, down on the 390,000 jobs created in May.

“This is likely to be a double-edged sword for investors. While the data is expected to show another round of strong hiring, which is inherently positive, it also paves the way for policymakers to hike interest rates even more aggressively,” said Hargreaves Lansdown analyst Sophie Lund-Yates.

“This is an upside-down situation whereby the announcement of a stronger economic foundation could be viewed as a catalyst for increased market jitters.”

In equity news, shares in French power company EDF rose 5% as the government prepared to nationalise the troubled business.