By Peter Nurse

Investing.com - European stock markets rose Friday, helped by the likely resumption of Russian gas supplies to Europe, ahead of the release of the key U.S. monthly jobs report.

By 04:00 ET (08:00 GMT), the DAX in Germany traded 1.1% higher, the CAC 40 in France rose 0.5%, and U.K.’s FTSE 100 climbed 0.5%.

Russia looks set to resume gas supplies through its key pipeline to Europe, with shipment orders, published by the pipeline’s operator, indicating that flows are expected to restart on Saturday at the same level as before the work.

This news has come as a relief as countries in western Europe scramble for energy supplies amid fears that Moscow will authorize more halts this winter.

Still, gains are limited ahead of the release of the August U.S. jobs report, at 08:30 ET (12:30 GMT), which is one of the last pieces of economic data the Fed will see before its September meeting, where it is set to raise its benchmark interest rate again.

Nonfarm payrolls are expected to have increased by 300,000 jobs last month after surging 528,000 in July, and the release comes shortly after Fed Chair Jerome Powell warned of the need to continue to tighten monetary policy to quell inflation even at the expense of rising unemployment.

The size of the interest rate hike the U.S. central bank will announce later this month is in doubt, but an increase in payrolls would mark the 20th straight month of job growth, suggesting the labor market is coping with the aggressive rate hikes already instigated.

The European Central Bank is also expected to lift its interest rates next week, and with record-high inflation fast approaching double digits the question is whether the central bank will go for a 50-basis-point hike, as it did in July, or an even larger move.

In corporate news, Lufthansa (ETR:LHAG) stock rose 1.7% despite pilots at the German airline beginning a one-day strike on Friday after a failed round of wage talks, forcing the cancellation of hundreds of flights.

Shell (LON:SHEL) stock rose 1.5% with Reuters reporting that the energy giant has shortlisted candidates to succeed Chief Executive Officer Ben van Beurden, who is preparing to step down in 2023.

Oil prices bounced Friday, but were still on course for substantial losses this week on concerns China’s COVID-19 restrictions and slowing global growth will hit demand.

Additionally, the Group of Seven finance ministers are expected to firm up plans on Friday to impose a price cap on Russian oil, trying to hit Moscow’s finances while keeping crude flowing.

The Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, are due to get together at the start of next week, and traders will be looking to see the output levels agreed given top producer Saudi Arabia floated the idea of cuts earlier this week.