STOXX set to end week 0.5 lower
U.S. nonfarm payrolls at 1230 GMT
Faurecia slides on 705 mln euro capital increase
Leonardo up on Rheinmetall offer for minority stake in unit

June 3 Reuters European shares edged higher on Friday, with investors focusing on U.S. nonfarm payrolls data for clues on the Federal Reserve39;s next policy move.

The panEuropean STOXX 600 index rose 0.2, with volumes expected to be subdued due to holidays in the UK and China. The day39;s gains cut weekly losses to about 0.5.

Healthcare, industrials and miners boosted the STOXX 600, but the auto sector slipped 0.4 as France39;s Faurecia slid 5.1.

The auto parts supplier said it launched a 705 million euro 758 million capital increase to fund its acquisition of German rival Hella. 

Miners and energy stocks also fell. Oil prices were lower after OPEC decided to increase production.

On the data front, investors are hoping that any signs of a slowdown in U.S. employment could sway the Fed toward a less aggressive policy path after its members signalled overnight that tightening may not end in September should inflation continue to rise. 

Meanwhile, data this week showing record high inflation in the euro zone spurred bets that the ECB may be forced to tighten sooner or make larger interest rate hikes. nL8N2XN337

The central bank has so far signalled plans to start raising rates in July to reach 0 or above by September.

In view of the dramatic inflation trend and the fact that the ECB is so…