European stocks open higher, eyes turn to US data

European shares opened higher on Friday as investors awaited US non-farm payrolls data to place bets on the central bank’s tightening of monetary policy while also bracing for any change in the European Central’s stance at its meeting next week.

The pan-European Stoxx 600 index saw broad gains in its listed shares, which pushed it up 0.4 percent by 0707 GMT, putting it on track to erase almost all of its weekly losses.

Investors hope that any signs of a slowdown in the US employment market can make the US central bank inclined to adopt a less hawkish monetary policy.

Meanwhile, data released this week showing a record rise in inflation in the eurozone has raised speculation that the European Central Bank may have to tighten monetary policy sooner or raise interest rates further.

The healthcare and luxury goods sectors supported the Stoxx 600 index in early trading.

But the French auto parts supplier Faurecia fell 3.5 percent, to the bottom of the index. The company said it had launched a capital raise of 705 million euros ($758 million) to fund its acquisition of German rival Hella.