Investing.com - European stock markets edged higher Friday, as investors digested the results of the U.K. general election ahead of the release of key U.S. employment data.
At 03:05 ET (07:05 GMT), the DAX index in Germany traded 0.4% higher, the CAC 40 in France rose 0.3% and the FTSE 100 in the U.K. climbed 0.3%.
UK political change
The changing political climate in the U.K. will be at the forefront of investors’ attention Friday, after the opposition Labour Party surged to a comprehensive win in a parliamentary election, ending 14 years of often turbulent Conservative government.
As of 03:05 ET, Labour, led by Keir Starmer, had won 410 of the 650 seats in parliament, giving it a large majority with a handful of seats yet to declare.
U.K. stocks have gained, as has the pound, as investors appear to have judged that a period of intense market volatility, driven by political and economic tumult under the Conservatives, may be drawing to a close.
That said, the election also saw the growth of the right-wing populist Reform UK party, headed by Brexit campaigner Nigel Farage.
This brings the second round of voting in the French parliamentary election, due on Sunday, into focus, after the success of the far-right National Rally in last weekend’s initial vote.
The two most likely scenarios – a government led by the far-right National Rally of Marine Le Pen or a hung parliament – would present unprecedented challenges for the European Union.
US payrolls loom large
German industrial production slumped 2.5% on the month in May, while the French equivalent fell 2.1%, illustrating the weak economic performance of the eurozone heading into the summer months.
The European Central Bank cut interest rates last month and signalled more easing in the coming months, but made no commitment about the timing of the next move.
However, most attention economically will be on the U.S, monthly jobs report, as investors, returning from the Independence Day holiday, search for clues as to when the Federal Reserve will start its own rate-cutting cycle.
Economists are expecting the U.S. economy to have added 189,000 jobs in June after a larger than forecast gain of 272,000 the previous month.
Shell to take hefty impairment
In corporate news, oil giant Shell (LON:SHEL) announced it will take an impairment charge of up to $2 billion after the sale of its Singapore refinery and pausing of construction of one of Europe's largest biofuel plants.
French bank BNP Paribas (OTC:BNPQY) and Swiss lender UBS (SIX:UBSG) are reportedly expressing interest in buying HSBC’s German wealth-management unit, Bloomberg News reported.
French technology company Atos (EPA:ATOS) said on Friday it had successfully secured short-term financing via two tranches of loans from creditors, adding it still expected to reach a final restructuring agreement this month.
Crude on track for weekly gains
Crude prices edged lower Friday, but were on track for a fourth consecutive positive week on hopes of strong summer fuel demand in the U.S..
By 03:05 ET, the U.S. crude futures (WTI) traded 0.4% lower at $83.71 per barrel, while the Brent contract dropped 0.3% to $87.15 per barrel.
Oil rose this week on strong summer demand expectations in the United States, the world's largest oil consumer, with official data from the Energy Information Administration showing that U.S. crude and fuel stockpiles all fell by more than expected last week.
Market sentiment has also been supported this week intensifying geopolitical tension in the Middle East.