(Bloomberg) — European stocks ticked higher at the open on Friday, reversing some of the week’s losses ahead of US jobs data which could give investors better clarity about the Federal Reserve’s next move. 

The Stoxx Europe 600 Index gained 0.1% at 9:15 a.m. in Paris, tracking similar small moves in US futures contracts. The energy and real estate sectors led gains while media equities were among the biggest laggers. 

DSV A/S jumped after the Danish freight-forwarding company sold €5 billion worth of new shares without resorting to a discount to finance its takeover of DB Schenker. 

Europe’s regional benchmark index is on course for a weekly loss of more than 2%, with the sentiment boost provided by China’s recent stimulus announcements gradually faded as escalating tensions in the Middle East sapped risk appetite. 

Investors are concerned that, should Israel strike critical Iranian assets, the Islamic Republic will escalate the conflict and potentially disrupt global energy shipments. 

Amid all the geopolitical uncertainty, investors are looking for further signals on the health of the US economy. Economists anticipate that hiring picked up slightly in September, an outcome that would ease lingering concerns that labor demand is deteriorating.

Alexandre Baradez, chief market analyst at IG in Paris, said that a buoyant labor market might encourage US policymakers to cut interest rates at a slower pace than currently expected. 

“Good news on the front of US jobs could morph into headwinds for markets,” he said.  

Softer hiring and a rise in the jobless rate earlier this year were major drivers behind the Federal Reserve’s decision to start its policy-easing campaign with a large half-a-point cut in interest rates last month.

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