European markets are set for a mixed open on Friday as investors brace for fresh inflation data from both the eurozone and the United States. Price figures are due from France, Spain, Italy, and Germany, while the flash reading for the wider euro area will be released next Tuesday. Across the Atlantic, traders are also watching the U.S. personal consumption expenditures (PCE) price index, a key gauge for the Federal Reserve’s interest rate decisions.
Market sentiment has been cautious this week, with France’s political turbulence, questions surrounding Federal Reserve independence, and corporate earnings, including from chip giant Nvidia, weighing on investor confidence. Futures data indicate London’s FTSE 100 may open slightly higher, while Germany’s DAX and France’s CAC 40 are pointing to declines. On Thursday, the Stoxx Europe 600 closed at 553.04, down 0.11%.
Despite recent volatility, the Stoxx 600 remains on track to finish August with a gain of nearly 1.4%, marking its first consecutive monthly advance of the year. The momentum has been supported by expectations of monetary easing in the U.S., particularly after Fed Chair Jerome Powell signaled a dovish stance in his recent speech. According to CME’s FedWatch tool, markets currently price in an 85% probability of a rate cut in September.
In corporate news, French spirits maker Rémy Cointreau revised its outlook, forecasting a €20 million ($23 million) hit to operating profit from U.S. tariffs, down from €35 million previously. The adjustment follows a new U.S.-EU trade agreement that sets baseline duties at 15%. Meanwhile, the European Union has formally proposed scrapping tariffs on American industrial goods, a move aimed at reducing transatlantic trade tensions.
Globally, U.S. stock futures were little changed overnight, while Asia-Pacific markets traded mixed amid a slew of regional economic releases. Investors worldwide remain focused on inflation readings and central bank policy, which continue to set the tone for global equity performance heading into September.
Source: cnbc