Europe open: Investors upbeat ahead of US jobs data

(Sharecast News) - European stock markets were putting in decent gains on Friday morning on a quiet day on the continent, as investors braced themselves for the US jobs report. The Stoxx 600 was up 0.5% at 443.49 by 0911 BST, with the FTSE 100 and Ibex 35 rising 0.4%, the Cac 40 up 0.5%, the DAX 0.6% higher and the FTSE MIB jumping 1%.

"Stocks firmed up a bit more in Europe ahead of the key US non-farm payrolls report later. It follows a positive session driven by a decline in bond yields and the US dollar, whilst oil prices are heading for a sharp weekly reversal," said Neil Wilson, analyst at Finalto.

"Jobs data is key: We had the Jolts job openings number sparking a rout in bonds that pushed the US 10yr to a new 16-year this week, whilst the 30yr rose above 5% for the first time since the GFC. Meanwhile the UK 30yr gilt yield hit its highest since 1998. Following these sharp moves things have been a fair bit calmer as the ADP private payrolls came in soft, but the path of least of resistance is ultimately higher," Wilson said.

The ADP Employment Report on Wednesday showed that just 89,000 jobs were created in September, down from an upwardly revised 180,000 the previous month and well below the 160,000 expected by analysts. However, the 'official' non-farm payrolls report, due out on 1330 BST, can often contrast with the ADP figures and is expected to show that job creation eased to 170,000 last month, from 187,000 previously.

In economic data closer to home, German factors orders were up 3.9% over the month in seasonally and calendar adjusted terms after a revised 11.3% drop in July (changed from the initial estimate of -11.7%). The consensus estimate was for a smaller rise of 1.8%.

UK house prices fell again in September as high borrowing costs continued to dent the market, according to Halifax. House prices declined by 4.7% on the year, following a 4.5% drop in August. On a month-on-month basis, house prices were down 0.4% in September following a 1.8% decline the month before.

Aviva jumps on M&A rumours

UK-listed Aviva surged on Friday after markets blog Betaville suggested in one of its 'uncooked' alerts that the insurance group was at the centre of takeover talk. Citing people following the situation, Betaville said there were rumours that Aviva has attracted interest from a company looking to purchase the business.

However, the identity of the company circling Aviva is unclear. Allianz and Axa were suggested as possible interested parties.

Volvo and Renault were making headlines after announcing they would joint launch a new company, along with logistics group CMA CGM, to produce electric vans. The auto manufacturers will each invest €300m over the next three years. Both stocks were higher early on.