PARIS, May 5 (Reuters) – European stocks regained ground on Friday in early trading as they await the release of U.S. jobs data, which could give more clues to the future path of the Federal Reserve’s monetary policy .
In Paris, the CAC 40 .FCHI gained 0.45% to 7,373.81 points at 07:57 GMT. In London, the FTSE 100 .FTSE is up 0.61% and in Frankfurt, the Dax .GDAXI is up 0.4%.
The EuroStoxx 50 index .STOXX50E is up 0.22%, the FTSEurofirst 300 .FTEU3 0.28% and the Stoxx 600 .STOXX 0.23%.
Wall Street ended in the red as California-based bank PacWest Bancorp PACW.O (-51%) said it was considering selling among several strategic options, sending its stock price down 51% and the financial sector .SPSY down 1.29%. .
Ongoing difficulties in the banking world have led some observers to believe that the Federal Reserve will soon have to end its cycle of raising interest rates, as it hinted at the end of its meeting on Wednesday.
“The US banking turmoil increases the risk of a hard landing for the economy… We believe further Fed hikes are not on the cards,” said Emmanuel Cau, at Barclays, adding that only “a rapid drop in inflation” or “a sharp weakening in growth” would induce the central bank to lower rates.
The results of the giant Apple AAPL.O, which exceeded expectations, also contributed to improving the market climate. In after-hours trading, the Cupertino group was up 2% and Nasdaq 100 futures are up 0.4%.
Caution could however limit risk-taking pending the employment statistics in the United States in April, which are due to be published at 12:30 GMT.
In European company news, Air France-KLM AIRF.PA fell 3.81%, with analysts pointing to an operating loss slightly above expectations.
British competitor IAG ICAG.L gained 2.72%, with the owner of British Airways forecasting a profit above its expectations this year thanks to a significant rebound in demand.
Adidas ADSGn.DE climbs 5.06%, among the strongest gains in the Stoxx 600, after the publication of better than expected quarterly results.
(Laetitia Volga, editing by Kate Entringer)