European stocks rise as investors digest U.S. jobs data; Sainsbury’s shares fall 5%

Europe-listed shares moved higher on Friday, as investors assessed key economic data out of the U.S. that could influence the Federal Reserve’s monetary policy decisions this year.

The pan-European Stoxx 600 was up 0.7% by 2:00 p.m. in London (9:00 a.m. ET), with major regional bourses and most sectors in positive territory.

Data released by the U.S. Bureau of Labor Statistics on Friday showed nonfarm payrolls rose by 50,000 in December, lower than the downwardly revised 56,000 in November and short of the Dow Jones estimate of 73,000.

European stocks tracked pre-market gains on Wall Street, as the figures spurred hopes that the softening labor market will prompt an interest rate cut from the Fed at its meeting toward the end of this month.

Defense stocks extended gains for a fifth consecutive day on Thursday, adding 0.3% by the afternoon. It follows President Donald Trump’s call for U.S. military spending to rise and continued rhetoric on annexing Greenland.

Trump called for a 50% increase in U.S. military spending, eyeing a $1.5 trillion budget in 2027, in a Truth Social post late Wednesday.

He has also been ramping up calls for Greenland to be brought under Washington’s control and is considering various options to make it happen — including military action. It could mean the end of NATO, given the U.S. and Denmark, which is responsible for the defense of Greenland, are both members.