Europe open: Share rally stalls as focus turns to US jobs data

(Sharecast News) - European shares were in muted mood on Friday after hitting record highs in the previous session after the European central Bank cut interest rates and as investors awaited key US jobs data. The pan-European Stoxx 600 index was down 0.05% to 524.40 in early deals. The ECB on Thursday lowered interest rates for the first time in five years but gave away little in the way of timings for the next cut and lifted some forecasts for growth and inflation. Canada cut rates on Wednesday, joining Sweden and Switzerland which had already moved on policy.

Eyes now turn to US job numbers where growth is expected to have maintained its moderate pace last month, while wage gains were seen holding steady.

"Recent economic data, especially within the labour market, has shown signs of stalling, which adds particular significance to today's non-farm payrolls number," said Interactive Investor head of markets Richard Hunter.

"The readings have tended to confound expectations of late, and whatever the result, the number will likely move the market. A significantly lower figure than expected could reignite concerns of a hard landing, whereas a particularly strong number would play to the narrative of the Fed's previous assumption that rates would remain higher for longer and likely beyond September."

In economic news, German exports rose by 1.6% in April compared with the previous month, the second straight month of gains, and better than forecasts of a 1.1% rise.

The monthly gains were driven by exports to China, up 0.8% to €8.4bn, and the UK, up 15.4% to €7.4bn.

Imports gained 1.9% month-on-month.

Reporting by Frank Prenesti for Sharecast.com