European shares edge higher after bonds-driven selloff, focus on inflation data

European stocks edged higher on Friday after a sharp selloff ‌driven by the bond market rout, while investors looked ahead to euro zone inflation data and US jobs report for fresh clues on monetary ‌policy outlook.

The pan-European STOXX 600 was up 0.4% at 629.18 points ‌by 0720 GMT. The index closed 1.3% lower on Thursday, touching its lowest level in more than three months as global government bond yields hit multi-year highs.

Attention ⁠now ​turns to ⁠the euro zone flash inflation data due later in the day, which could offer ⁠signals on the European Central Bank's monetary policy tightening plans. US nonfarm payrolls, ​expected at 1230 GMT, will also be closely watched, with forecasts ⁠centered on a gain of 90,000 jobs in September.

European banking stocks were on ⁠track ​for their worst weekly performance since April, hurt by concerns about higher interest rates denting the economy. Germany's Commerzbank dropped 2% ⁠after RBC downgraded the stock to "sector perform" from "outperform".

Puma declined 1.2% after U.S. peer ⁠Nike projected a ⁠surprisingly steep drop in full-year revenue as it continues to grapple with weak demand in China ‌and heightened competition.