Last checked at 
QUALITY STOCKS SHINE DURING EARNINGS SEASON (0943 GMT)
Fears of a global recession are high, but European earnings have so far dodged the worst of expectations and shares are at a two-month high.
And for Cyril Bertrand, portfolio manager at Eric Sturdza Investments, good stock picking on the earnings front is one reason his portfolio performed well this year.
"Our fund is overweight on quality stocks and underweight value, and this month we witnessed a decent rebound from the quality stocks we own," he said.
A few stand-out names from one portfolio of around $140 million include Dutch payments company Adyen, Dutch semiconductor company ASML, German medical equipment maker Sartorius and UK Croda International
Adyen shares are up 23% in the last month while ASML shares are 36% higher, Sartorius rose 12% and Croda is up 7%.
"The market is obviously worried about the probability of a recession... but companies are not confirming that so far, both in our portfolio and even outside."
Bertrand points to the upbeat signals from staffing companies as a positive signal on the wider macro environment, despite slowdown fears.
Major staffing company Adecco on Thursday reported a 13% increase in second-quarter revenue.
Looking forward to the rest of the year, Bertrand is still waiting to see if any signals of an activity slowdown materialise in the form of lower earnings from cyclical companies.
"We think that structurally the positioning of the fund on quality names, which can be either growth or defensive, in the current context should still be favourable."
Eric Sturdza Investments had $1.4 billion of assets under management as of June 30.
STOXX FLAT AS TRADERS AWAIT FOR U.S. JOB DATA (0744 GMT)
European shares are little changed with all eyes on U.S. jobs data due later in the day, which is expected to give clues to how much the Fed's hefty rate hikes is slowing economic growth.
Investors are also busy assessing yesterday's Bank of England's rate hike - its biggest in 27 years. The central bank warned that a recession in Britain is on its way.
The pan European STOXX 600 index is flat, but still set for its third consecutive weekly gains.
A mixed bag of earnings reports is also weighing. Deutsche Post shares added 5.8% on posting double-digit growth in revenue and earnings and confirmed its outlook for 2022.
WPP, the world's largest advertising group, increased its annual net sales outlook, but shares of the company fell 5.3% in early trading.
(Joice Alves)
PAYING PARTICULAR HEED TO PAYROLLS (0647 GMT)
U.S. payrolls data day is dawning shortly and set to tell us whether markets should be more worried about inflation or a recession.
As Rabobank notes -- Will a weak print provide more ‘pivot-fuel’ for a market already so drunk on it that it won’t heed the Fed saying “WRONG!” over and over – as they just did yet again yesterday? Conversely, will a strong payrolls number sober the market up?
If markets decide good jobs news is also good news for stocks, expect the bouncers at the Fed to shout even louder.
A Reuters survey of economists expects U.S. non-farm payrolls to have increased by 250,000 jobs last month after rising by 372,000 in June. But signs from other claims and related data warns of a poor number.
The jobs data will likely outshine most morning news in Europe, though Allianz <ALVG.DE and the London Stock Exchange Group are both due to report earnings.
Investors have had a night's sleep to see if they're happy with their response to the Bank of England raising rates by 50bps to 1.75%, their highest in 27 years - and warning of a long drawn out recession.
Two-year gilt yields fell, future hikes were priced out and cuts priced in, while the 10-year yield slipped 3bps to 1.88%.
Sterling lost ground on the euro, though clawed back its initial losses against the dollar in U.S. trading.
Shares rose in Asia this morning, particuarly in Taiwan , as markets decided China firing missiles near the island after Nancy Pelosi's visit was less worrisome than it could have been.
Key developments that could influence markets on Friday:
Economic data: US non-farm payrolls July, Canadian July jobs data, German June industrial output, UK Halifax housing data July
Europe earnings: Deutsche Post, London Stock Exchange, Rheinmetall, Allianz, WPP, Hargreaves Landsdown
US earnings: Goodyear Tire & Rubber, Western Digital Corp
(Alun John)
EUROPEAN FUTURES EDGE UP AHEAD OF U.S. JOBS DATA (0635 GMT)
European futures are edging higher ahead of U.S. jobs data, with investors waiting to see whether the Fed's aggressive pace of rate hikes is slowing economic growth in the world's largest economy.
Nonfarm payrolls are expected to increase by 250,000 jobs last month, after rising by 372,000 jobs in June.
EUROSTOXX 50 futures are up 0.2% pointing to a start of the day in the black for European bourses, with the STOXX 600 set for a third consecutive week of gains.
(Joice Alves)
