European stock markets are heading for a mixed open on Friday as attention turns to inflation prints from some of the region’s biggest economies, along with the U.S.
Price rise data is due from France, Spain, Italy and Germany, ahead of the flash August reading for the euro area next Tuesday.
Stateside, investors will be monitoring the personal consumption expenditures price index, a key metric for the Federal Reserve. It comes after Fed Chair Jerome Powell stoked expectations for an interest rate cut in September with a speech last week widely interpreted as dovish-tilting. Interest rate trading currently places around an 85% probability on a cut next month, according to CME’s FedWatch tool.
IG futures data points to London’s FTSE 100 opening slightly higher on Friday, with declines for Germany’s DAX and France’s CAC 40.
European markets have been largely negative this week, swayed by French political drama, questions over Fed independence and earnings from chip giant Nvidia.
However, the regional Stoxx 600 index is still heading for a gain of near 1.4% in August — set to be its first back-to-back postive month since the start of the year.
In corporate news, spirits maker Remy Cointreau said it now expects a 20 million euro ($23 million) impact on operating profit as a result of U.S. tariffs, down from 35 million euros previously, after the U.S. and EU struck a trade deal setting baseline duties at 15%.
On Thursday, the EU formally proposed removing tariffs on U.S. industrial goods, a White House condition for reducing rates for the bloc on automobiles.
U.S. stock futures were little changed overnight, while Asia-Pacific markets were mixed amid a slew of economic data.
