EU stock markets should open with minor losses on Friday as investors await the release of monthly U.S. employment data that could influence Fed monetary policy.
Germany’s DAX share contract was flat, France’s CAC 40 futures fell 0.3% and Britain’s FTSE 100 futures fell 0.1%.
The chairman of the Federal Reserve, Jerome Powell, made comments this week that suggested the bank might slow the rate of interest rate increases at its upcoming final policy-setting meeting. This has helped the stock market.
The Fed has raised rates by 75 bps in the last four meetings. However, the market is now pricing a 50 basis point cut in December.
Nonetheless, inflation remains extremely high, with data released on Thursday showing that the PCE inflation index—the Fed’s preferred inflation gauge—remained significantly above the central bank’s target range in October.
The next factor that could influence the Fed’s decision comes later Friday with the release of the U.S. jobs report. Economists anticipate about 200,000 new jobs in November, a decrease from the previous month’s 261,000.
Inflation Falls More Than Anticipated
In Europe, inflation fell more than expected in November but remained near record levels annually, at 10%. Friday’s European economic data include German trade data for October and Eurozone producer prices for the same month.
This coming Friday in the corporate world, attention should be focused on Credit Suisse (SIX: CSGN), as the bankrupt Swiss lender’s ongoing client exodus may lead to takeover rumors.
The prices of crude oil stocks were largely unchanged on Friday. Nevertheless, it should increase for the coming week in anticipation that China will further ease COVID restrictions, thereby increasing economic activity and, consequently, energy demand in the world’s largest crude importer.
In other news, OPEC+ will meet virtually on Sunday to decide on future production levels. Meanwhile, European Union governments are still debating the Russian seaborne oil price cap level.
U.S. crude futures were 0.1% lower at $81.12 per barrel, while Brent futures were 0.1% higher at $86.92.
After three weeks of decline, both benchmarks were on track for their first weekly gains.
Furthermore, gold futures fell 0.1% to $1,813.85/oz, while the EUR/USD rose 0.1% to 1.0527.
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