LONDON – European markets are preparing for a partially higher open on Friday as investors track corporate earnings and await the key jobs report in the US.
The British FTSE 100 is expected to rise by about 11 points at 7459, the German DAX is expected to rise by about 12 points to 13675, and the French CAC 40 is expected to rise by about 10 points to 6523.
Markets suffered a cautious week as investors reacted to a slew of corporate earnings. The pan-European Stoxx 600 closed the previous session partially above the flat line.
The Bank of England on Thursday raised interest rates by 50 basis points while forecasting that UK inflation would peak above 13% in October and that the economy would enter a prolonged recession in the fourth quarter.
Friday’s US jobs report, due out at 1:30pm London time, is likely to provide clues about the path of the Federal Reserve’s monetary tightening and the state of the US economy.
Economists expect 258,000 jobs to be added in July, down from 372,000 in June, according to Dow Jones. The unemployment rate is expected to remain steady at 3.6%.
US stock futures rose cautiously in early trading as Wall Street looks to post modest gains this week.
Most stocks rose in the Asia-Pacific region overnight, with Taiwanese shares leading gains in the region as investors dumped Chinese military exercises after US House Speaker Nancy Pelosi’s visit to Taiwan.
Earnings continue to drive individual stock price action in Europe. Allianz, London Stock Exchange Group and WPP were among the companies that reported before the bell on Friday.
On the data front, French industrial production, trade balance and current account data for June are due out on Friday morning.
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