Key facts
- European shares dipped 0.1% ahead of U.S. jobs data.
- Volkswagen shares jumped 6% after announcing a transformation plan.
- The transformation plan includes 50,000 job cuts.
- The European autos index gained 1.1%.
- Chemical and banking sectors fell by almost 1%.
European shares edged lower on Friday as investors awaited key U.S. jobs data, while Volkswagen's stock surged after the automaker announced a major transformation plan. The pan-European STOXX 600 index dipped 0.1% to 648.67 points. Germany's DAX saw a slight increase of 0.1%, while London's FTSE and France's CAC 40 both declined by 0.1% and 0.2% respectively.
Volkswagen shares jumped 6% after its supervisory board reached a turnaround agreement, averting further escalation with unions and shareholder Lower Saxony. This news boosted the broader European autos index by 1.1%.
Investors are closely monitoring the August U.S. nonfarm payrolls report for insights into the Federal Reserve's future policy decisions. The recent escalation in the Middle East conflict has driven oil prices higher, contributing to fears of renewed inflationary pressures and causing sell-offs in global equity and bond markets in recent weeks. Brent crude was trading around $96 per barrel on Friday, heading for its steepest weekly gain since mid-July.
Economically sensitive sectors such as chemicals and banking fell by almost 1% each, contributing to the overall decline in the main European stocks index.