European shares drop on caution ahead of US payrolls report

(Reuters) – European shares slipped for a fifth straight session on Friday as caution prevailed ahead of the crucial U.S. jobs data, the last such labour market report before the Federal Reserve’s monetary policy decision on Sept. 18.

The pan-European index fell 0.4% by 0711 GMT. The index has dropped 3% so far this week, set to snap its four-week winning streak.

index was down 0.5% after data showed the country’s industrial production fell by 2.4% in July, compared with analysts’ prediction of a 0.3% drop.

Energy stocks were the biggest drag on the markets, declining 0.8% as oil prices hovered near 14-month lows.

All eyes will be on the U.S. non-farm payrolls data at 1230 GMT which is expected to show the American economy added 160,000 jobs in August, compared with 114,000 a month ago. The unemployment rate is seen falling to 4.2% from 4.3%.

The eurozone’s revised GDP data for the second quarter is due at 0900 GMT.

Among stocks, Airbus declined 1% after Europe’s air safety regulator ordered inspections on engines of its A350-1000 jets following an engine fire on a Cathay Pacific flight earlier this week.

France’s Elis SA slipped 10.5% after a report that the workplace supplies provider approached Vestis, the former uniform rentals business of Aramark, with an acquisition offer.