European Shares Flat Ahead of US Jobs Report

European stock markets cut some early losses to trade near the flat line Friday as all eyes turn to US nonfarm payrolls data due later in the day, which will likely provide further clues on the US interest rates outlook.

The November report is expected to show 200,000 jobs were added last month, the least in nearly two years, which would indicate that interest rate hikes are having the intended effect on the economy, without signaling a possible recession.

Investors have also digested a batch of European economic data.

The Euro Area producer price inflation slowed more than expected in October, but remained well above the ECB's target, while Germany's exports fell more than forecast amid soaring inflation, weakening foreign demand and strained supply chains.

For the week, European stocks headed for a seventh straight week of gains, the longest such streak since April 2021, amid optimism about China reopening and hopes the Fed would start slowing the pace of its rate hikes this month.