Key facts
- European stocks edged higher on Friday.
- The pan-European STOXX 600 was up 0.4% at 629.18 points by 0720 GMT.
- The index closed 1.3% lower on Thursday, its lowest in over three months.
- Euro zone flash inflation data and US nonfarm payrolls are due later in the day.
- European banking stocks are set for their worst weekly performance since April.
- Commerzbank dropped 2% after an RBC downgrade.
European stocks edged higher on Friday, attempting to recover from a significant selloff on Thursday that was triggered by turmoil in the bond market. The pan-European STOXX 600 index was up 0.4% at 629.18 points by 0720 GMT, after closing 1.3% lower the previous day at a more than three-month low.
Investors are now focused on upcoming economic data, including euro zone flash inflation figures and the US nonfarm payrolls report, for indications on the future path of monetary policy. The US jobs report is expected to show a gain of 90,000 jobs in September.
European banking stocks have been particularly affected, heading for their worst weekly performance since April due to concerns that higher interest rates could negatively impact the economy. In company-specific news, Commerzbank shares fell 2% following an "sector perform" downgrade from "outperform" by RBC. Puma also declined 1.2% after its US peer Nike projected a steeper-than-expected drop in full-year revenue, citing weak demand in China and increased competition.