European Shares Seen Flat To Higher At Open

European stocks may open flat to slightly higher on Friday as investors ponder the prospects for early policy normalization by the Federal Reserve ahead of next week’s FOMC meeting.

Asian markets traded mixed amid global growth concerns and jitters over China’s crackdown on private industries.

China’s near-term economic prospects appear to be more challenged as the country implements a zero-tolerance policy concerning COVID-19.

U.S. Treasury yields strengthened and the dollar hovered near a three-week high amid rising expectations of Fed tightening.

Oil prices fell slightly in Asian trade as more supply came back online in the U.S. Gulf of Mexico following two hurricanes.

Gold edged higher after dropping around two percent on Thursday following upbeat U.S. economic data and amid strength in the dollar index.

It’s a relatively quiet day ahead on the Eurozone’s economic calendar, with finalized August inflation figures likely to reaffirm the surge in inflation in the euro area last month.

The Office for National Statistics is scheduled to issue U.K. retail sales data for August. Sales are forecast to grow 0.5 percent from July, when the volume was down 2.5 percent.

Across the Atlantic, trading later in the day may be impacted by reaction to the University of Michigan’s preliminary report on consumer sentiment for September.

U.S. stocks ended a choppy session narrowly mixed overnight as retail sales and jobless claims figures came in above expectations, giving ammunition to bets on early Fed tapering.

The Dow and the S&P 500 slipped around 0.2 percent while the tech-heavy Nasdaq Composite inched up 0.1 percent.

European stocks closed higher on Thursday as Ryanair lifted its traffic growth forecast and data showed Eurozone exports rose in July after six consecutive falls.

The pan European Stoxx 600 gained 0.4 percent. The German DAX and the U.K.’s FTSE 100 both edged up 0.2 percent while France’s CAC 40 index rose 0.6 percent.

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