European shares edge higher after bonds-driven selloff, focus on inflation data

Oct 2 (Reuters) - European stocks edged higher on Friday after a sharp selloff driven by the bond market rout, while investors looked ahead to euro zone inflation data and US jobs report for fresh clues on monetary policy outlook.

The pan-European STOXX 600 .STOXX was up 0.4% at 629.18 points by 0720 GMT.

The index closed 1.3% lower on Thursday, touching its lowest level in more than three months as global government bond yields hit multi-year highs.

Attention now turns to the euro zone flash inflation data due later in the day, which could offer signals on the European Central Bank's monetary policy tightening plans.

US nonfarm payrolls, expected at 1230 GMT, will also be closely watched, with forecasts centered on a gain of 90,000 jobs in September.

European banking stocks .SX7P were on track for their worst weekly performance since April, hurt by concerns about higher interest rates denting the economy.

Germany's Commerzbank CBKG.DE dropped 2% after RBC downgraded the stock to "sector perform" from "outperform".

Puma PUMG.DE declined 1.2% after U.S. peer Nike NKE.N projected a surprisingly steep drop in full-year revenue as it continues to grapple with weak demand in China and heightened competition.