European Shares To Open On Steady Note With Inflation Data In Focus

European stocks are likely to open higher on Friday as Treasury yields stalled and the dollar came off 10-month highs, giving comfort to investors who were concerned about inflation and a potential U.S. government shutdown.

Federal Reserve Bank of Richmond President Thomas Barkin said on Thursday that there are various possible outcomes facing the economy and it’s too soon to know if another interest-rate increase will be needed in coming months.

Meanwhile, Federal Reserve Chair Powell didn’t make any comments on the outlook for economy or monetary policy in his Thursday’s speech.

Asian markets were mostly higher in thin trade amid holidays in mainland China and South Korea.

The Japanese yen traded at 10-month lows after reports showed Japan’s factory output was flat in August and core inflation in Tokyo slowed in September for the third straight month.

Oil prices were little changed after falling sharply from 2023 highs overnight on expectations of increased supply from Russia and Saudi Arabia and lingering concerns over China’s beleaguered property market.

In economic releases, the focus will be on the Eurozone’s CPI and the U.K.’s Q2 final GDP figures along with the U.S. data on personal income and spending that includes readings on inflation said to be preferred by the Fed.

U.S. stocks closed higher overnight after bond yields slipped from 16-year highs and crude prices pulled back from their highest level in more than a year.

On the economic front, unemployment claims edged up in the week ending Sept. 23 and pending home sales plunged in August while GDP increased at an unrevised 2.1 percent annualized rate last quarter, a slew of data showed.

The tech-heavy Nasdaq Composite gained 0.8 percent, the S&P 500 added 0.6 percent and the Dow rose 0.4 percent.

European stocks bounced back from a six-month low on Thursday after data showed German inflation slowed in September to the lowest since the outbreak of the war in Ukraine.

The pan European STOXX 600 rose 0.4 percent. The German DAX climbed 0.7 percent, France’s CAC 40 rose 0.6 percent and the U.K.’s FTSE 100 edged up 0.1 percent.

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