European stock markets were set to open modestly higher on Friday, 4 September, following gains on Wall Street and across Asia as investors reduced expectations of an imminent US interest-rate increase. Attention is now firmly focused on the US employment report due later in the day.
European benchmarks point higher
Early indications suggested a broadly positive opening across the region. Futures pointed to gains of around 0.23% for Germany’s DAX, 0.12% for France’s CAC 40 and 0.12% for the pan-European STOXX 600. London’s FTSE 100 was expected to open around 0.1% higher.
Frankfurt builds on Thursday’s advance
Germany’s DAX entered Friday after closing Thursday 0.63% higher at 26,003.32 points. Futures indicated another positive opening, with investors encouraged by the strong US session and improved sentiment towards interest rates. Volkswagen was also in focus after its board approved its Future Plan 2030 restructuring programme.
Fed comments provide relief
The improved mood followed comments from Federal Reserve Governor Christopher Waller, who indicated that he could support keeping US interest rates unchanged in September if inflation continues to moderate. Markets subsequently reduced the probability of a rate increase this month to around 50%, from approximately 63% a day earlier.
Wall Street had already responded strongly on Thursday, with the Dow Jones Industrial Average gaining 1.18%, the S&P 500 rising 1.06% and the Nasdaq Composite advancing 1.40%.
US jobs report becomes the next test
Friday’s central event is the US August employment report. Economists expect non-farm payrolls to increase by around 56,000 after a surprise decline of 23,000 in July, while unemployment is forecast to remain at 4.1%.
For European investors, the figures could determine whether Friday’s cautious optimism survives into next week. A stronger-than-expected labour market could revive expectations of higher US rates, while softer data may reinforce the case for the Federal Reserve to remain on hold.
Newshub Editorial in Europe – 4 September 2026
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