European stocks aided by Fed hopes even as worst week in a year looms

• European stocks hovered in positive territory on Friday, propped up by hopes of easing measures from the U.S. Federal Reserve.
• The pan-European STOXX 600 rose 0.3pc after three straight sessions of declines that erased about 4pc of value.

European stocks hovered in positive territory on Friday, propped up by hopes of easing measures from the U.S. Federal Reserve, but gains were slim as markets threatened to log their worst weekly performance in a year.

The pan-European STOXX 600 rose 0.3pc after three straight sessions of declines that erased about 4pc of value.

Sectors considered stable during times of economic uncertainty such as healthcare, telecoms and food and beverage, were among the prominent gainers.

Technology stocks rose 0.4pc, with chipmakers jumping after a report said Apple Inc would increase its iPhone 11 production.

Shares of chipmakers AMS, Infineon Technologies, STMicro and Dialog Semiconductor jumped between 1pc and 3.4pc.

With corporate news light, investors now wait for the latest U.S. payrolls data, due at 12:30 GMT, to gauge the health of the world's largest economy - particularly after a dismal set of data this week bolstered hopes of an interest rate cut in October from the Fed.

"If we have a soft number today, that's going to trigger another sell-off. This will be confirmation that the slowdown is real," said David Madden, analyst at CMC Markets in London.

In a turbulent week for markets roiled by weak readings on factory and services sector activity in the United States and the euro zone, as well as U.S. tariffs on European Union goods, the STOXX 600 was on course to post its worst weekly performance in about a year.

London-listed shares, also on course for their worst weekly performance in a year, took the biggest hit due to fresh Brexit worries and recession fears, while eurozone shares  were set to post their biggest weekly decline in two months.

The basic resources index was among the worst performing sectors on the day, losing about 0.7pc as copper prices retreated on fears of slowing global demand. Heavyweight miner BHP Group Plc fell about 0.5pc.

Automakers fell 0.7pc, with BMW shedding 1.7pc after an Australian regulator called for 20,000 cars with faulty Takata airbags to be kept off the roads, many of which include BMW cars.

Shares of London Stock Exchange Group plc rose 2pc after reports that some of the bourse operator's shareholders  told Hong Kong Exchanges and Clearing to increase its takeover offer by 20pc.