European stocks are presumed to start on a strong note on Friday, following another record set by Wall Street stocks, despite mixed economic data. Asian markets mirrored the bullish trend on Wall Street, with Japan's Nikkei average trading near an all-time high due to dovish bets on the Bank of Japan (BOJ).
Shunichi Suzuki, the Japanese Finance Minister, remarked that the decision to tighten the BOJ's ultra-loose monetary policy rests squarely with the bank, considering varying market opinions.
Meanwhile, gold maintained stability above $2,000 per ounce, its value reinforced by a depreciating dollar and decreasing Treasury yields. Oil also remained relatively stable, nearing its peak in three months amid indications that OPEC+ is adhering to supply cut commitments.
Regarding economic news, UK's retail sales data for January, predicted to grow by 1.5% monthly, is due later in the day, as opposed to the 3.2% decrease in December. Simultaneously, INSEE, France's statistical office, will release the final consumer price data for January, expected to remain at 3.1%, consistent with preliminary estimates.
Across the pond, American producer price inflation, consumer sentiment, and housing start reports may pique investor interest. U.S. stocks escalated overnight due to dwindling retail sales data, resulting in a drop in Treasury yields and fostering speculation that the Federal Reserve may lower interest rates in forthcoming months.
As revealed in other separate reports, industrial production surprisingly dipped in January while unemployment claims decreased last week. Consequently, the S&P 500 increased by 0.6%, establishing yet another record close. Simultaneously, the Dow soared by 0.9%, while the tech-dominated Nasdaq Composite eked out a 0.3% gain.
On Thursday, European stocks ended the day stronger, riding on the wave of optimistic corporate earnings, and predictions of possible interest rate cuts by the Bank of England in the second quarter to spur the country out of recession. This resulted in the Pan European STOXX 600 extending gains by 0.7% while Germany's DAX rose by 0.6%. France's CAC 40 experienced a 0.9% increase, and the UK's FTSE 100 finished 0.4% higher.
