Europe open: Stocks slip ahead of non-farm payrolls

European stocks slipped in early trade, taking their cue from a downbeat Asian session as investors looked to the release of the all-important non-farm payrolls report.

At 0845 BST, the benchmark Stoxx Europe 600 index was down 0.3%, Germany’s DAX was off 0.1% and France’s CAC was 0.5% lower.

At the same time, oil prices were in the red as a stronger dollar outweighed supply disruptions caused by the wildfire in Canada.

West Texas Intermediate was down 1.4% to $43.70 a barrel and Brent crude was 1.1% lower at $44.52.

“The main focus today will be on US employment data this afternoon. Even with the Fed appearing very eager to give the impression that the economy is doing well and that more rate hikes are in the offing sooner rather than later, recent economic data has been showing a mixed picture at best,” said Markus Huber, a trader at City of London Markets.

“Consequently only a much stronger than expected non-farm payroll number is likely to spook markets. However with overall sentiment distinctly negative and China releasing important trade figures over the weekend it wouldn't come as too much of a surprise if stocks finish the trading week on a negative to cautious note.”

The payrolls report is due at 1330 BST, along with the unemployment rate.

“The consensus expectation is for an increase of just over 200,000. But Wednesday’s weak ADP data together with yesterday’s jump in Jobless claims and the challenger job-cut number will mean an insiders’ ‘whisper’ somewhat below here. But the big question is how the markets will react if we get a similar miss today?” said David Morrison, senior market strategist at SpreadCo.

In corporate news, ArcelorMittal shares slid after the steel giant reported a 33% drop in first-quarter profit amid falling prices.

Rio Tinto was in the red as the miner said it and its partners, the Mongolian government and Turquoise Hill Resources, have approved the next stage of development on the Oyu Tolgoi copper and gold mine.

InterContinental Hotels edged lower after it reported a slowdown in growth in the first quarter as weak oil markets and an earlier Easter hit Europe and the Americas.

EasyJet flew lower after it posted a rise in April passenger numbers but a drop in the load factor.

Man Group slumped after Citigroup cut its stance on the stock to ‘sell’ from ‘buy’.