European markets are expected to start trade mixed to slightly higher on Friday morning, as investors gear up for more data releases, while taking note of the positive trading seen overseas.
The U.K.’s FTSE 100 is expected to open 4 points lower at 7,426, while the German DAX is set to start on a positive note, up 22 points at 12,077 and the French CAC up 12 points at 5,097, according to IG.
Sentiment appears to have been boosted somewhat, following a positive close on Wall Street on Thursday, and a upbeat session from Asia.
In Asia, markets were boosted on the back of the release of the Caixin China manufacturing data for August, which beat market expectations and came in at a six-month high.
Looking forward, Europe is set to have its own slew of economic data coming out on Friday. Manufacturing PMI (Purchasing Managers’ Index) data from Italy, Spain, France, Germany and the euro zone is set to be released, while final gross domestic product (GDP) figures from Italy are also expected to be published.
When it comes to politics, sterling will be watched with eager eyes as uncertainty continues to mount surrounding Brexit negotiations. On the final day of the third round of Article 50 talks Thursday, chief EU negotiator Michel Barnier stated that the exit negotiations had failed to generate the kind of progress required to head into a new phase set in October.
Meanwhile, geopolitics continues to weigh on the back of investors’ minds, as traders look for any news surrounding North Korea’s relationship with the West, and where it could be headed. In recent days, trading has been volatile, after news emerged that North Korea had fired a ballistic missile over Japan – a move which was met with criticism from leaders worldwide.
Sticking with the U.S., the wrath of Hurricane Harvey continues to add uncertainty to the markets, especially when it comes to commodities. At 6:50 a.m. London time, oil prices were trading in the red, with Brent at $52.71 per barrel, while U.S. crude hovered at $46.92.
When it comes to what stocks to watch on Friday, HSBC and BHP Billiton will be closely scrutinized during the final day of trading this week.
Mark Tucker is set to join the HSBC board with a view to become group chairman in early October, replacing Douglas Flint. Meanwhile, Ken MacKenzie will become the next chairman of BHP Billiton on Friday, taking on the role from Jac Nasser.
No major earnings are expected to take place on Friday.
Source: cnbc
European markets to open slightly higher as investors await key data