LONDON – European Stock Markets Open Higher

European stock markets started strong on Friday as investors kept an eye on a crucial U.S. employment report, which could influence expectations for future interest rate cuts from the Federal Reserve.

The Stoxx 600 index saw a 0.25% increase in early trading, with mining stocks leading the way, rising 1.2%.

Earlier in the week, both stocks and bonds faced selling pressure due to concerns over the government’s high debt levels and issues related to fiscal planning. However, the mood improved on Thursday, with U.S. pay data bolstering hopes for rate cuts from the Fed in September. Some are indicating a 99% chance of a cut according to the CME’s FedWatch tool.

All attention will be on the employment report for August, which is expected to reveal a moderate softness in the labor market—an ideal scenario for reinforcing these expectations. Economists surveyed by Dow Jones predict an increase of about 75,000 jobs for last month.

In the UK, retail sales volume rose by 0.6% in July, surpassing the 0.2% increase forecasted in a Reuters poll. Meanwhile, data from Halifax indicated a 0.3% rise in home prices during August.

Economist Paul Dales from Capital Economics noted that the latest figures suggest the UK economy is maintaining “decent momentum” at the start of the third quarter. Still, discussions about potential tax increases in the November budget might make households more cautious.

On another note, shares of Orsted dropped by 2% after the Danish wind farm developer adjusted its full-year revenue guidance down to between 24 billion and 27 billion Danish kroner ($3.75 billion), citing slower offshore wind speeds. The company is also gearing up for a shareholders’ meeting on Friday to seek approval for the next phase of a $9.4 billion rights issue aimed at addressing political challenges surrounding a U.S. project. Additionally, Orsted has announced plans to sue the Trump administration to resume construction at a wind farm off the New England coast.