Europe open: Stocks edge higher as investors eye payrolls

European stocks edged higher in early trade as investors looked to the release of the eagerly-awaited non-farm payrolls report.

At 0900 BST, the benchmark Stoxx Europe 600 index was up 0.3%, Germany’s DAX was 0.2% higher and France’s CAC 40 was up 0.6%.

At the same time, oil prices also nudged up. West Texas Intermediate was up 0.4% at $43.33 a barrel and Brent crude was 0.3% firmer at $45.59.

The main focus on Friday will be on the payrolls, particularly after Federal Reserve Chair Janet Yellen said last week that a move on interest rates would be dependent on upcoming data.

Mike van Dulken, head of research at Accendo Markets, said: “Risk appetite is tempered as usual in the run-up to the latest US jobs report, but possibly even more so than usual given Fed clarity about data-dependency before the next US rate rise.

“The result of this afternoon’s US Non-Farm Payrolls could well dictate sentiment onto the weekend. This as markets continue to digest yesterday’s raft of mixed - in some cases surprising - manufacturing data that calls into question the quality of economic recovery around the world.”

On the company front, French hotels group Accor was on the front foot after Barclays lifted the stock to ‘overweight’ from ‘equalweight’.

Transport operator Go-Ahead Group rallied after posting stronger-than-expected annual profits in the rail division.

On the downside, German e-commerce investor Rocket Internet slumped after it reported a first-half consolidated loss of €617m.

Elsewhere, Segro was under the cosh after the property developer announced plans to raise £340m in a placing to fund the development of new projects.

Retirement housebuilder McCarthy & Stone fell sharply after it reported a rise in revenue in the year to the end of August but said there has been evidence of some weakness in the secondary housing market since its update at the end of June.

On the macroeconomic calendar, inflation figures for the eurozone are due at 1000 BST. In the US, the payrolls report is at 1330 BST along with the unemployment rate and trade balance figures.