As concerns about rising interest rates arose ahead of the closely-watched monthly payrolls data, European stock markets are anticipated to open Friday with caution following the previous session's severe losses. 

After statistics revealed that U.S. labor market conditions remain tight, European equities suffered significant losses on Thursday, following Wall Street lower. This presents the Federal Reserve with the potential to continue tightening monetary policy after stopping its year-long rate hike cycle in June. 

Data released on Thursday revealed that private payrolls increased by 497,000 jobs in June, significantly more than was anticipated, up from a downwardly revised 267,000 jobs in May.  

Also in Thursday’s session, jobless claims for the previous week were basically in line with expectations, and at the end of May, there were a sizable 9.8 million vacant positions. 

These strong results have raised worries that the Federal Reserve would raise interest rates more quickly to combat inflation, which puts Friday's closely anticipated jobs report squarely in the focus. 

According to the report, nonfarm payrolls climbed by 225,000 jobs in May, after increasing by 339,000 jobs in May and by 294,000 jobs in April. 

Given the significance of the greatest economy in the world as a generator of global growth, worries that sustained rate hikes may send the U.S. economy into recession continue to weigh heavily. 

Meanwhile in Europe, after a slight uptick the month before, German industrial production decreased by 0.2% on a monthly basis in May. This shows that the industrial sector is still having trouble.  

The industrial sector of the largest economy in the eurozone is failing to emerge from the recession it entered earlier this year due to sluggish global demand from China. 

Following a larger-than-expected drop in U.S. oil supplies, the price of oil increased on Friday, pointing to strong demand from the world's top consumer of crude. 

In the week ending June 30, according to official EIA data, U.S. inventories decreased by 1.5 million barrels, more than anticipated. A larger-than-expected decline in gasoline inventories suggests improved fuel demand during the summer travel season. 

(Sources: investing.com, reuters.com)