Euro zone inflation data due at 1000 GMT
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STOXX 600 flat, up 3.4 so far in week

Jan 6 Reuters European shares were poised for their best week in eight, even though the benchmark index struggled for momentum on Friday as investors awaited euro zone inflation and U.S. jobs figures for more clues on the pace of future interest rate hikes.

The panEuropean STOXX 600 was flat by 0915 GMT. For the week so far, it was up 3.4 following a drop in natural gas prices and upbeat economic data.

Data showed retail sales in Germany rose in November, adding to a slew of positive numbers this week that have indicated a milderthanexpected recession and an easing of price pressures in some countries.

All eyes are on the December euro zone inflation data due at 1000 GMT, with economists expecting prices to have declined yearonyear for a second consecutive month.

Inflation readings in the euro zone were not all good news, and core inflation remains high, analysts at UBS Global Wealth Management said in a note. Despite the encouraging data this week, we expect central banks to stick with a hawkish stance at this time.

Also in focus is the U.S. nonfarm payrolls report after private payrolls data on Thursday showed a biggerthanexpected rise in employment and a drop in jobless claims, underscoring a tight labour market and…