European markets are expected to open on Friday on a cautious note as market’s focus on the health of the corporate sector. Geopolitical tensions in the Middle East as well as election uncertainty in the U.S. are also expected to weigh on market sentiment.
Wall Street had closed on a mixed note on Thursday, amidst the latest earnings updates, mixed economic data and an easing in treasury yields. While the Fed’s Beige book painted a weak economic picture, Thursday’s weekly data showed an unexpected decline in initial jobless claims. Nasdaq Composite added 0.76 percent to close trading at 18,415.49 whereas the Dow Jones Industrial Average shed 0.33 percent to finish trading at 42,374.36.
Broadly positive sentiment prevailed in the European bourses on Thursday amidst upbeat corporate results. Germany’s DAX gained 0.34 percent. The pan-European Stoxx-50 added 0.27 percent. Switzerland’s SMI gained 0.24 percent. U.K.’s FTSE 100 added 0.13 percent followed by France’s CAC 40 that edged up 0.08 percent.
Current indications from the European stock futures indicate a weak sentiment. The DAX Futures (Dec) has slipped 0.43 percent. The CAC 40 Futures (Nov) has shed 0.38 percent. The FTSE 100 Futures (Dec) has declined 0.21 percent. The pan-European Stoxx 50 Futures (Dec) has dropped 0.40 percent. The SMI Futures (Dec) finished Thursday’s trading 0.12 percent higher.
American stock futures are trading weak. The US 30 (DJIA) is trading 0.03 percent lower, whereas the US500 (S&P 500) is trading 0.02 percent below the flatline.
Asian stock markets are trading on a mixed note. China’s Shanghai Composite has rallied 0.75 percent whereas Hong Kong’s Hang Seng has surged 1.1 percent. Australia’s S&P ASX 200 has edged up 0.06 percent whereas DJ New Zealand has edged down 0.05 percent. South Korea’s KOSPI has edged up 0.01 percent. Japan’s Nikkei 225 benchmark has slipped close to a percent ahead of the general election. India’s Nifty 50 is also trading 1 percent below the flatline.
The Dollar Index is trading almost flat on Friday after Thursday’s losses in the aftermath of the not-so-rosy picture pointed out in the Fed’s beige book. The Dollar Index (DXY), a measure of the U.S. dollar’s strength relative to six currencies, is trading 0.01 percent lower at 104.05 versus the previous close of 104.06. The EUR/USD pair has edged down 0.04 percent to 1.0823 whereas the GBP/USD pair has slipped 0.04 percent to trade at 1.2967.
Gold slipped gain after recording gains on Thursday. Gold Futures for December settlement is trading at $2,741.10, which is 0.28 percent lower than the previous close of $2,748.90.
Persisting geopolitical tensions in the Middle East supported crude oil prices. Brent Crude Futures for December settlement gained 0.26 percent to trade at $74.57 whereas WTI Crude Futures for December settlement added 0.20 percent to trade at $70.33.
Major data releases scheduled from the region on Friday include Ifo Business Climate for October from Germany as well as Consumer Confidence for October and Unemployment Benefit claims for September from France.
Major earnings updates due from the region on Friday include Skandinaviska Enskilda Banken, Hermes International, Essity, Kongsberg Gruppen, Alfa Laval, Unilever, Telia Company and Swedish Orphan Biovitrum.
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