Europe midday: Stocks edge higher ahead of non-farm payrolls report

At midday, the benchmark Stoxx Europe 600 index and Germany’s DAX were up 0.3%, while France’s CAC 40 was 0.6% higher.

At the same time, oil prices retreated. West Texas Intermediate was down 0.9% at $41.57 a barrel, while Brent crude was down 1% at $43.87.

Markus Huber, a trader at City of London Markets, said: “All eyes will be today on US non-farm payroll data later this afternoon. After disappointing second-quarter gross domestic product data it appears to be rather unclear where the US economy and therefore the Fed are heading in the next few months.

“While weaker-than-expected figures wouldn't necessarily constitute a new trend just yet, worries regarding the US economy currently undergoing a slowdown would certainly increase and not be the scenario which would be considered best for stocks. Overall, sentiment is mixed with today's US job data likely to set the tone for the next few days.”

Rabobank expects the headline number in the payrolls report to rise by “a healthy” 180,000, but average earnings are seen up just 2.6% year-on-year, which it said was “yet another structural issue that monetary policy can’t change, apparently”.

On Thursday, the Bank of England cut interest rates to a record low of 0.25%, expanded the asset purchase programme by £60bn and launched a new £100bn funding scheme for banks.

On the corporate front, Royal Bank of Scotland was under the cosh after it reported a £2bn loss for the first half of the year.

Allianz was also in the red after the German insurer posted a 46% drop in net profit for the second quarter, while Novo Nordisk tumbled as it cut its profit and sales forecast for the year.

On the upside, Mediobanca gained ground after it reported a 31% jump in fourth quarter net profit, while LafargeHolcim advanced after its second-quarter earnings beat analysts’ expectations.

The US non-farm payrolls report and the unemployment rate are at 1330 BST, along with trade balance figures.