European shares open higher with eyes on U.S. data
2022.06.03 10:35
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February 22, 2022. REUTERS/Staff
(Reuters) – European shares opened higher on Friday, with investors awaiting U.S. non-farm payrolls data to make bets about central bank tightening, while also bracing for any change in stance from the European Central Bank at its meeting next week.
Broad-based gains saw the pan-European STOXX 600 index rise 0.4% by 0707 GMT, placing it on course to erase almost all its weekly losses.
Investors are hoping that any signs of a slowdown in the U.S. employment market could sway the Federal Reserve towards a less aggressive policy path.
Meanwhile, data this week showing record high inflation in the euro zone has spurred bets that the ECB may be forced to tighten sooner or make larger interest rate hikes.
The central bank has so far signalled its plans to start raising rates in July to reach 0% or above by September.
Healthcare and luxury stocks boosted the STOXX 600 in early deals.
On the other hand, French auto parts supplier Faurecia slid 3.5% to the bottom of the index. The company said it launched a 705 million euro ($758 million) capital increase to fund its acquisition of German rival Hella.
