FRANKFURT (dpa-AFX) - Before the labor market data from the U.S. expected in the afternoon, European real estate stocks have clearly recovered on Friday. Investors were currently betting more on the financial markets that the U.S. Federal Reserve Fed at its next meeting on June 14 will not raise interest rates further for the time being. This is benefiting real estate stocks after they had suffered badly in recent months from the interest rate hike and the resulting increase in financing costs.

On Friday, Vonovia shares climbed more than five percent to the top of the Dax. In the MDax and SDax, TAG, LEG, Patrizia and Deutsche Wohnen achieved similarly high price gains.

In the MDax, Aroundtown's share price rose by 3.3 percent, bringing it closer to the one-euro mark. The pan-European sector index Stoxx Europe 600 Real Estate rose by 3.8 percent, having recently approached its March low again.

According to ING Bank, the odds of the Fed raising rates by another 0.25 percentage point in June are still around 25 percent. "However, a strong labor market report could very easily change the situation in favor of a rate hike," ING economist James Knightley wrote. Experts on average expect the U.S. to have added 195,000 nonfarm jobs in May. The data is due for release this afternoon./tih/ajx/jha/