- US unemployment rate falls
- US employers add fewer than expected jobs
- ECB's Coene signals possible policy action
FTSE 100: 0.60%
CAC 40: 0.35%
FTSE MIB: 0.52%
IBEX 35: -0.38%
Stoxx 600: 0.44%
European equities were little changed as the US unemployment rate fell to the lowest level since November 2008.
Unemployment fell to 7.2% in September from 7.3% in August, beating the forecast for the rate to remain unchanged.
However, employers in the world's biggest economy added fewer workers than expected last month in the lead up to the government shutdown.
Non-farm payrolls fell to 148,000 in September from a revised 193,000 gain in August, according to the Labor Department.
Economists had pencilled in 180,000 jobs for last month.
The report had been delayed due the partial federal government shutdown which started on October 1st after lawmakers failed to reach an agreement over the budget in time.
Federal Reserve policymakers are turning to jobs data to determine whether the US is ready for a rise in the key interest rate and a scaling back of monetary stimulus.
"If there was any question about whether the Fed would taper later this month, this has surely put an end to it," said Craig Erlam, Market Analyst at Alpari.
"Most people had already accepted that it would not happen, but now the earliest date we can possibly be looking at is December. And even that is too early as far as I'm concerned."
The Fed will hold a two-day meeting starting October 29th.
ECB's Coene says inflation fall may prompt policy action
European Central Bank (ECB) Governing Council member Luc Coene has said that a further drop in inflation may warrant "policy action".
"If core inflation or inflation would continue to drop further, that in itself - even regardless of what the exchange rate
does - in my view would already be sufficient reason to think about strengthening the accommodative stance of policy," Coene told newsagency MNI.
"Even if it stays where it is for an extended period of time, it's in my view too low."
Eurozone inflation in September was at 1.1%, well below the ECB's target of just below 2%.
Deutsche Lufthansa, Novartis
Deutsche Lufthansa's shares
fell after the airline predicted operating profits this year of €600-€700m, well below analysts' expectations.
Swiss drug-maker Novartis rallied after raising its full-year outlook for the second quarter in a row.
German automaker Daimler AG is preparing a two-year investment plan for commercial vehicle production in Brazil and will announce its investments for 2014 and 2015 on Sunday, a spokeswoman cited by Reuters said.
Drugmaker Reckitt Benckiser jumped after saying full-year revenue will grow at least 6%.
The euro rose 0.67% to $1.3773.
Brent crude futures climbed $0.327 to $110.00 per barrel on the ICE.