Oct 2 (Reuters) – European stocks edged higher on Friday after a sharp selloff driven by the bond market rout, while investors looked ahead to euro zone inflation data and US jobs report for fresh clues on monetary policy outlook.
The pan-European STOXX 600 was up 0.4% at 629.18 points by 0720 GMT.
The index closed 1.3% lower on Thursday, touching its lowest level in more than three months as global government bond yields hit multi-year highs.
Attention now turns to the euro zone flash inflation data due later in the day, which could offer signals on the European Central Bank’s monetary policy tightening plans.
US nonfarm payrolls, expected at 1230 GMT, will also be closely watched, with forecasts centered on a gain of 90,000 jobs in September.
European banking stocks were on track for their worst weekly performance since April, hurt by concerns about higher interest rates denting the economy.
Germany’s Commerzbank dropped 2% after RBC downgraded the stock to “sector perform” from “outperform”.
Puma declined 1.2% after U.S. peer Nike projected a surprisingly steep drop in full-year revenue as it continues to grapple with weak demand in China and heightened competition.
(Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Janane Venkatraman)
