European shares inched up on Friday, ahead of U.S. payrolls data that could sway expectations around the Federal Reserve’s policy move later this month, while investors continued to monitor political developments in France.
The pan-European STOXX 600.STOXX was up 0.2% by 0936 GMT, on track for its seventh consecutive day of gains and set for its best weekly performance in ten.
French assets saw a relief rally after President Emmanuel Macron said he would appoint a new prime minister in the coming days whose top priority will be getting a 2025 budget adopted by parliament after the government was toppled by lawmakers.
The country’s benchmark CAC 40 index.FCHI rose 1.2% to touch a fresh three-week high.
A gauge of European luxury stocks.STXLUXP jumped 1.5% to its highest in over a month, boosted by Italy’s Moncler MONC.MI rose 5.5% after Goldman Sachs upgraded its shares to “buy”.
The market’s focus will be on the highly anticipated U.S. payroll data for November, scheduled for 1430 GMT, that could alter the odds of a Fed rate cut this month. Traders are currently pricing in a 68% chance of such a move.
“It’s very much a let’s see what happens next in France and focus on the U.S. non-farm payrolls,” said Fiona Cincotta, senior market analyst at City Index.
“We are going to be seeing solid jobs growth, but nothing too extreme that’s going to unnerve the Fed or the market as far as expectations surrounding a December rate cut are concerned”, she added.
Among other movers, Direct Line DLGD.L rose 7% after the British insurer said it was set to recommend a sweetened 3.61 billion pound ($4.60 billion) cash-and-stock takeover by Aviva AV.L if the bigger rival makes a formal offer.
Puig Brands PUIGb.MC fell 3.5%, having shed as much as 9% earlier, after the Spanish cosmetics company said its Charlotte Tilbury brand was conducting a global withdrawal for select batches of its make-up setting spray.
BMW BMWG.DE rose 1.6% after Jefferies upgraded the German automaker’s stock to “buy” from “hold”.
