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European stock markets traded modestly higher on Friday morning as investors awaited the release of key U.S. nonfarm payrolls data, along with the impending U.S. presidential election. At the start of the European trading session, the DAX in Germany gained 0.2%, France’s CAC 40 rose 0.3%, and the U.K.’s FTSE 100 edged up by 0.4%.
U.S. Nonfarm Payrolls Data in Focus
With limited European economic data releases on Friday, investor focus shifted to the U.S., where the October jobs report is expected to show an increase of over 100,000 jobs. The unemployment rate is projected to stay steady at 4.1%, with average hourly earnings growth at 4.0%. This data is particularly influential as it will likely guide the Federal Reserve’s decision on interest rates. However, a significant surprise in the data would be necessary to alter the current expectation of a quarter-point rate cut by the Fed next week.
Impact of U.S. Presidential Election Uncertainty
Uncertainty surrounding the U.S. presidential election is also contributing to market caution. With candidates Donald Trump and Kamala Harris reportedly in a close race, investors are weighing potential policy outcomes. A Trump victory is widely speculated to bring inflationary policies, which could have broad implications for global markets, including the European corporate sector.
European Corporate News: Siemens and Others
In European corporate news, Siemens shares rose 0.4% following comments from managing board member Cedrik Neike, who indicated the company’s readiness for further software acquisitions, building on its recent $10.6 billion purchase of U.S.-based Altair. With limited major earnings announcements on Friday, Siemens’ potential expansion through acquisitions drew investor interest.
Additionally, British house price data showed minimal growth, up by only 0.1% in October compared to September’s 0.6% gain, highlighting a slowdown in the U.K. housing market.
Wall Street Eyes Tech Earnings
European investors were also keeping an eye on Wall Street after major tech earnings releases. Apple announced a modest growth outlook, although iPhone 16 sales surpassed those of the iPhone 15. Meanwhile, Amazon reported strong third-quarter results, with both profit and sales exceeding analyst expectations, providing a boost to Nasdaq futures.
