European stock markets remained stable, as investors focused on US employment figures, which could indicate the Federal Reserve's interest rate hike direction.

European stock markets traded within a narrow range as investors awaited US employment figures to assess the likelihood of a Federal Reserve interest rate hike in September. Meanwhile, Volkswagen shares surged 9.7%, their biggest gain since March 2566.

On September 4, 2026, at 2:33 PM, Bloomberg News reported that European stock markets moved within a narrow range on Friday as investors remained cautious ahead of the release of key US employment figures, which could be a key indicator of whether the Federal Reserve (Fed) will raise interest rates at its September meeting. Volkswagen shares surged after the company's supervisory board supported a major restructuring plan, including the cut of an additional 50,000 jobs.

The Stoxx Europe 600 index was virtually unchanged at 09:31 Paris time, with automotive stocks outperforming the market after Volkswagen shares surged up as much as 9.7%, their strongest intraday gain since March 2023.

Buying interest in Volkswagen shares came after the company's supervisory board supported its business turnaround plan, which includes cutting an additional 50,000 jobs, amid the German automaker's efforts to increase efficiency and cope with increased competition.

Besides automotive stocks, the travel and leisure sector, as well as technology stocks, were the strongest performers, while the chemical sector was the weakest performer in the market.

Among other individual stocks, Vodafone rose 1% after Goldman Sachs upgraded its recommendation for the telecommunications company from “sell” to “buy.”

Shares of Commerzbank fell following reports that Boris Rhein, the Minister-President of Hesse, met with Andrea Orcel, CEO of UniCredit, to discuss plans to acquire the German bank.

European investors remained cautious in pursuing the buying interest on Wall Street last night, which was boosted by comments from Federal Reserve Governor Christopher Waller signaling his willingness to support keeping interest rates unchanged if price pressures continue to ease.

Market attention is therefore focused on the U.S. nonfarm payrolls report for August, which is scheduled to be released later today.

If the employment figures come in stronger than expected, it could diminish market hopes that the Fed will avoid raising interest rates at its September meeting, and could put renewed pressure on risky assets.

Laurent Lamagnere, CEO of Alphavalue in Paris, views the market rally driven by comments from a single Fed official as only a short-term movement.

He stated that the key factor supporting the market so far is the strong second-quarter earnings. However, excluding that factor and the massive investments in AI, the remaining factors that would lead to a highly positive investor outlook on the market are quite limited.

The market is therefore closely watching U.S. labor data, as these figures could play a significant role in determining expectations regarding the direction of the Fed's interest rates and the investment climate in global stock markets in the coming period.

Reference: www.bloomberg.com

Read news related to both Thai and international stock markets here.