European stocks are anticipated to open positively on Friday following a dip in bond yields triggered by weak U.S. economic data, and impressive financial results from leading tech companies. Major global players including the Facebook parent company Meta, Apple, and Amazon have unveiled strong financial achievements, with Meta announcing its inaugural dividend and Apple declaring its first revenue gain in more than a year. Amazon also surpassed fourth-quarter revenue expectations due to strong seasonal trading and the sustained expansion of its highly productive cloud computing business.
Markets across Asia advanced together with U.S. stock futures, while gold is set to see its most substantial weekly increase in seven weeks. Investors are eagerly anticipating the forthcoming U.S. jobs report for better clarity on the Federal Reserve's possible interest rate cuts. The French Statistical Office, INSEE, is also slated to release industrial production figures for December, with expectations of a 0.2% month-on-month growth following a notable 0.5% rise in November.
The US dollar weakened, and bond yields fell as recent data hinted at a declining U.S. labor market. The global oil market is bracing for its most significant weekly loss since early November following reports of a ceasefire agreement between Hamas and Israel, a vital step toward ceasing the conflict.
U.S. stocks made a comeback after suffering the largest daily decline of 2024 the previous day, largely due to a stringent policy statement from the Federal Reserve. The Dow increased by 1%, while the tech-focused Nasdaq Composite and the S&P 500 both soared approximately 1.3%, as Treasury yields fell due to weak labor market data.
Last week saw a rise in U.S. jobless claims and fourth-quarter unit labor costs failed to meet forecasts. Moreover, manufacturing sector business activity continued to decline in January, according to separate reports.
Despite optimistic Eurozone inflation data and indications from the Bank of England of possible borrowing cost reductions this year, European stocks closed lower for the first time in six days on Thursday. The pan-European STOXX 600 fell by 0.4%, the German DAX lost 0.3%, France's CAC 40 declined by 0.9%, and the U.K.'s FTSE 100 slid by 0.1%.
