Investing.com - European stocks opened higher on Friday, recovering from the previous session’s modest losses, as investirs began to focus on the U.S. employment report due later in the day.
During European morning trade, the EURO STOXX 50 advanced 0.54%, France’s CAC 40 gained 0.58%, while Germany’s DAX 30 climbed 0.62%.
European equities slightly weakened on Thursday after the European Central Bank left its benchmark interest rate unchanged and warned that inflation in the euro area is likely to remain very low, or negative, for some time.
Market participants were eyeing the release of the U.S. nonfarm payrolls report later Friday for further indications on the strength of the job market. A better-than-expected report would boost expectations for a rate hike this summer by the Federal Reserve.
Financial stocks were mixed, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) declined 0.46% and 0.71%, while Commerzbank (DE:CBKG) gained 0.32% and Deutsche Bank (DE:DBKGn) dropped 0.47% in Germany.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) slid 0.28% and 0.29% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) rose 0.24% and 0.52%.
Elsewhere, E.ON SE NA (DE:EONGn) saw shares soar 2.08% after the German utility's Uniper unit said on Thursday it has secured a €5 billion financing line from three big banks.
The move came as sharholders are set to vote next Wednesday on the spin-off of the legacy power-plant and energy-trading operations as Uniper, while the Germany utility will keep renewables and other newer business areas as its future core business.
In London, FTSE 100 advanced 0.86%, boosted by sharp gains in mining and energy stocks.
Shares in Rio Tinto (LON:RIO) jumped 1.23% and BHP Billiton (LON:BLT) rallied 1.89%, while Anglo American (LON:AAL) and Glencore (LON:GLEN) surged 2.06% and 2.35% respectively.
Oil and gas major Royal Dutch Shell (LON:RDSa) added to gains, with shares up 1.90%, while rival company BP (LON:BP) climbed 2.15%.
Financial stocks were also broadly higher, as Lloyds Banking (LON:LLOY) gained 0.66% and Barclays (LON:BARC) advanced 1.18%, while the Royal Bank of Scotland (LON:RBS) and HSBC Holdings (LON:HSBA) jumped 1.25% and 1.42% respectively.
Meanwhile, Marks and Spencer Group PLC (LON:MKS) was one of the worst performers on the index, with shares down 1.79%, after the retail company announced plans to switch off music at all its U.K. retail stores after suffering “unsatisfactory” sales in the last financial year.
In the U.S., equity markets pointed to a steady open. The Dow Jones Industrial Average futures pointed to a 0.07% rise, S&P 500 futures a 0.02% uptick, while the Nasdaq 100 futures indicated a 0.02% gain.