European stocks rise before US jobs report

European stock markets rose on Friday as investors waited for US jobs data that could shape expectations for Federal Reserve interest rates, while oil prices dipped and the dollar was steady.

Around 1100 GMT, London’s FTSE 100 was up 0.7% at 10,947.40, Paris’s CAC 40 gained 0.5% to 8,741.22 and Frankfurt’s DAX rose 0.8% to 26,360.31.

The US employment report is due before consumer price figures next week. Kathleen Brooks, research director at XTB, said a strong payrolls reading and elevated wage pressure could lift expectations for a September rate increase and reinforce expectations that rates may stay elevated.

Oil prices moved lower after a volatile week as traders weighed whether the Strait of Hormuz would reopen. Brent crude was down 0.8% at $81.87 a barrel and West Texas Intermediate fell 0.5% to $76.92. The strait carries about a fifth of global oil.

Earlier in the week, US President Donald Trump called off strikes on Iran and said an agreement was close, while Tehran denied that talks took place. Iran said it was close to a pact with Oman on managing the strait and said the United States would need to end what Iran described as a naval blockade of Iranian ports.

Stocks in Asia were mixed. Hong Kong, Shanghai, Singapore and Jakarta advanced, while Tokyo, Taipei, Bangkok, Mumbai and Seoul declined. Official Chinese data showed exports and imports rose in July. On Wall Street, the Dow Jones Industrial Average fell 0.9% on Thursday after three days of record highs.