European stocks looked set to post their seventh straight week of gains amid less fear of global monetary policy tightening, despite stocks falling on Friday ahead of U.S. jobs data.
The pan-European STOXX 600 index fell 0.5% after two days of strong gains. Investors are awaiting US jobs data, which could influence the Federal Reserve’s rate hike plans.
Economists expect some 200,000 jobs to be added in October and any decline will be seen as proof that the Federal Reserve’s aggressive tightening is working. Recent data from Europe have also served to make the European Central Bank opt for a smaller rise.
Energy and financials were the biggest drags on the broad index on Friday, pulling it away from the June highs hit on Thursday.
The STOXX 600 is set to rise 0.3% for the week, its longest streak of gains since April 2021, as the optimism is also due to China easing its stance on strict COVID-19 restrictions. that have affected global growth.