European stocks mixed; earnings in focus ahead of key payrolls release

Investing.com - European stock markets traded in a mixed fashion Friday, with investors digesting more corporate earnings, including from iPhone maker Apple (NASDAQ:AAPL), ahead of the release of the key monthly U.S. jobs report.

At 03:20 ET (07:20 GMT), the DAX index in Germany traded 0.2% higher, the CAC 40 in France dropped 0.3% and the FTSE 100 in the U.K. traded largley flat.

Corporate earnings session continues

European markets have received a strong lead-in from Wall Street, supported by technology shares as positive news from Apple supported sentiment. However, there is a degree of caution ahead of the release of key U.S. employment data.

Apple's quarterly results and forecast beat modest expectations after the close on Wall Street Thursday, while the iPhone maker unveiled a record share buyback program of $110 billion,  the largest in its history, as well as an increase in its cash dividend of 4%.

There are also corporate earnings in Europe to digest.

Credit Agricole (OTC:CRARY) stock rose 3.7% after France's second-biggest listed bank posted a forecast-beating 55% jump in first-quarter net profit, helped by corporate and investment banking sales that outperformed rivals.

Societe Generale (OTC:SCGLY) stock rose 5.3% as net income fell less than expected in the first quarter, as profits on equity derivative sales offset weaknesses at the retail bank of France's third-biggest listed lender and in fixed-income trading.

On the flip side, Daimler (OTC:MBGAF) Truck stock slumped 5.9% after the German auto giant warned of a cooling market, even as it beat first-quarter core profit expectations, driven by a strong performance of its Trucks North America business.

Nonfarm payrolls looms large

The main economic data release of the day comes from the U.S., in the form of the closely-watched monthly employment report.

Nonfarm payrolls likely increased by 238,000 jobs last month after rising 303,000 in March, while the unemployment rate is seen holding below 4% for the 27th straight month. 

Fed Chair Jerome Powell made it clear the importance of the upcoming economic data as far as policy decisions are concerned, after the U.S. central bank held interest rates unchanged on Wednesday.

Financial markets continue to expect the central bank to start its easing cycle in September, but strong numbers could see this window start to close. 

In Europe, French industrial production fell 0.3% on the month in March, a disappointment, while eurozone unemployment and U.K. services PMI data are due later in the session.  

Crude edges higher

Crude prices edged higher from near seven-week lows Friday, but were headed for steep losses this week on demand uncertainty, robust U.S. stockpiles and easing tensions in the Middle East. 

By 03:20 ET, the U.S. crude futures traded 0.5% higher at $79.33 a barrel, while the Brent contract climbed 0.5% to $84.10 per barrel.

Both benchmarks were set to lose between 5% and 6% this week, as investors worried about the prospect of higher-for-longer interest rates curbing growth in the U.S., the top global oil consumer, and in other parts of the world.

Additionally, gold futures rose 0.1% to $2,310.05/oz, while EUR/USD traded 0.1% higher at 1.0728.