Europe open: Stocks slip as investors eye US jobs data

European stocks slipped at the opening on Friday as investors eyed US non-farm payroll data later in the day.

The pan-European Stoxx fell 0.43% with regional markets mixed. Investors were relieved that the US avoided a default as the Senate approved a temporary lift to the $28.4trn debt limit.

US employers are expected to have added 490,000 jobs in September, up from 235,000 in August, sharply lower than forecasts.

“NFPs are important and could be market moving later since the Federal Reserve has explicitly tied tapering and subsequent rates lift-off to the labour market,” said Markets.com analyst Neil Wilson.

“A weak number could just dissuade the Fed from announcing its taper in November, but I see this as a low-risk outcome. More likely is steady progress on jobs and the November taper announcement to follow.”

“The persistence of inflation and rising fuel costs in particular has changed the equation for the Fed entirely. Benign inflation that we were used to is no longer to be counted on to provide cover for trying to juice the labour market.”

In equity news, British-Airways owner IAG and travel company TUI gained as the UK was set to scrap Covid-19 quarantine requirements for 47 destinations.

Online pharmacy group Zur Rose fell to the bottom of the Stoxx with a decline of 6.28% after Berenberg downgraded the stock to ‘neutral’ from ‘buy’.

UK letter carrier Royal Mail gained after saying it had bought Canadian logistics company Mid-Nite Sun Transportation for CAD$360m (£210.5m).