Europe open: Shares flat ahead of US payrolls; VW jumps on job cuts

(Sharecast News) - European shares opened lower on Friday as investors eyed key US jobs data later in the day and also assessed a massive restructure plan from German car maker Volkswagen.

The pan-regional Stoxx 600 index was flat in early deals while Germany's DAX edged ahead on the Volkswagen news.

US markets rose overnight and Treasury yields retreated after Federal Reserve Governor Christopher Waller said he would be "inclined" to hold rates at this month's meeting of policy makers.

He also suggested the Fed was watching next week's inflation data before making a move, hinting that today's payroll data carried less weight on this occasion.

Economists are expecting a rise of 53,000 in non-farm jobs to be added last month compared with the shock loss of 23,000 jobs in July.

Oil prices remained elevated as the US seemed incapable of extricating itself from its war of choice with Iran. Brent crude hovered just below $95 a barrel as investors fear a supply crunch later this year, with the key Strait of Hormuz effectively shut.

In equity news, shares in Volkswagen jumped on the restructure deal, the biggest restructure in its 89year history, as it also announced plans to cut a total of 100,000 jobs and halve the number of models produced as the company confronts mounting pressure from Chinese rivals, high energy costs and the expensive shift to electric vehicles.

The move followed tense negotiations with unions representing the company's more than 650,000 workers worldwide, with labour leaders ultimately backing the deal.

Volkswagen had already agreed to reduce its workforce by about 50,000 by 2030, with deals reached with 37,000 employees so far. The latest plan lifts the total cuts to around 100,000, or around 15% of the workforce.

Reporting by Frank Prenesti for Sharecast.com