Europe pauses for breath ahead of US jobs data 

European stocks are expected to open lower on Friday as markets pause ahead of U.S. nonfarm payrolls data on Friday that will give a clear indication on the state of the U.S. economy.

The London FTSE index is called to open 4 points lower at 6,530, the German DAX down 28 points at 9,391 and the French CAC down 11 points at 4,107, according to IG.

Caution has set in among global markets ahead of the latest U.S. jobs data for June and as oil prices fluctuate. On Thursday, U.S. stocks closed mixed as sharp declines in oil prices weighed while in Asia on Friday, markets traded mostly lower early ahead of the all-important payrolls data.

Friday’s employment report is expected to show a rebound to 175,000 nonfarm payrolls, from May’s stunningly weak 38,000, according to Thomson Reuters. The June report is expected to include a reversal of the negative impact of the Verizon strike, which bit into May’s number and should add about 35,000 workers to the June report.

The jobs data are especially key since the shock slowdown in May hiring was one reason the U.S. Federal Reserve cited for leaving interest rates unchanged at its meeting last month. The Brexit referendum in the U.K. also gave the Fed reason to pause before tightening rates further.

Other news dominating the headlines on Friday is a shooting at a protest in Dallas, Texas. Four police officers are dead and seven injured in Dallas after two snipers opened fire during a demonstration against the U.S. shootings of black men.

U.S. President Barack Obama said more has to be done to address law enforcement shootings, saying that “this is not just a black issue, it’s not just an Hispanic issue, it’s an American issue that we should all care about. All fair minded people should be concerned.”

Oil prices are also being watched after prices oscillated from declines on Thursday to a rebound in early trading on Friday, bouncing off two-month lows hit in the previous session when prices fell 5 percent on news that the U.S. weekly crude draw missed some forecasts, Reuters reported.

In other news, U.K. Home Secretary Theresa May and Energy Minister Andrea Leadsom will battle it out to become the next U.K. Prime Minister after a second round of voting on Thursday eliminated Justice Secretary Michael Gove from the running.

Source: CNBC

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