European equity futures gain; Pay slips move the ECB into focus

European equity markets are expected to trade slightly higher on Monday as investors digest a disappointing US employment report and the potential impact on Federal Reserve monetary policy and global growth prospects. At 2:05 AM ET (0605 GMT) the DAX future in Germany was trading 0.3% higher, the CAC 40 future in France was up 0.1% and the FTSE 100 future in the UK was up 0. 2%. The weak start of trading in Europe on Monday, exacerbated by a bank holiday in the US, follows the US labor market report for September, which showed a much smaller increase in jobs than expected, but also an increase in wages. The US Federal Reserve has waited for employment numbers to improve before scaling back its extraordinary monetary stimulus. With 235,000 jobs created versus the expected 750,000, the timing for the bond purchase program tapering is likely to be delayed as the central bank assesses the economic impact of the growth in Covid-19 cases. This also brings the European Central Bank into focus, as the region's central bank is expected to discuss a reduction in its stimulus measures at its meeting on Thursday. Inflation in the euro area has risen to a 10-year high of 3%, which has led the more conservative members of the Governing Council to urge the bank to curb its extensive asset-buying program. However, the region's PMI data has shown that confidence in the recovery is weakening and there are concerns that if the ECB starts tapering ahead of the Fed, the common currency could rise and what effect this would have on exports . Crude oil prices traded significantly lower on Monday after Saudi Arabia, the world's largest exporter, cut prices for Asian buyers over the weekend, suggesting an uncertain demand outlook. State oil giant Saudi Aramco (SE: 2222) announced on Sunday that it would cut October prices by at least $ 1 per barrel for all types of crude oil sold to Asia, the region that consumes most of its oil, which is well above expectations. Those demand concerns in the face of the still-escalating Covid-19 cases came after the Organization of Petroleum Exporting Countries and its allies, a group known as OPEC +, confirmed last week their intention to add an additional 400,000 barrels a day in October deliver. At 2:05 AM ET, the US crude oil futures were trading 1.4% lower at $ 68.30 a barrel while the Brent contract fell 1.5% to $ 71.56. Additionally, gold futures fell 0.3% to $ 1,829.10 / oz while EUR / USD traded 0.1% lower at 1.1871.