European stock markets are anticipated to start Friday on a weak note due to worries about the monetary policies of central banks. A rebound in the dollar, fueled by differing monetary policies, has also dampened mood.
Wall Street saw continuing gains on Thursday, largely driven by strong hints for future rate cuts by the Federal Reserve and positive earnings reports. The Nasdaq Composite stepped up by 0.20% to close at 16,401.84, while the Dow Jones Industrial Average rose by 0.68% to end the day at 39,781.37.
European stocks concluded their trading day at multi-year highs on Thursday, stimulated by an unexpected rate cut from the Swiss National Bank and indications of ongoing expansionary policy from the Bank of England. The FTSE 100 in the UK climbed 1.88%, the pan-European Stoxx-50 increased by 1.02%, and Germany's DAX grew by 0.88%. Switzerland's SMI and France's CAC 40 similarly gained, rising by 0.73% and 0.22% respectively.
European stock futures, however, suggest a mostly bearish sentiment. The Stoxx 50 Futures have fallen 0.08%. Similarly, the CAC 40 Futures, DAX Futures, and FTSE 100 Futures declined by 0.05% and 0.03% respectively, contrasting with the SMI Futures, which closed 0.57% higher on Friday.
On the other hand, American stock futures are moderately optimistic. The DJIA (US 30) trades up 0.07%, while the S&P 500 (US500) is 0.06% above the norm.
Asian stock markets are mixed, with regulatory concerns and profit booking causing some volatility. Hong Kong's Hang Seng index has experienced a significant drop of 2.6%, while China's Shanghai Composite is trading over 1% lower. South Korea's KOSPI has decreased by 0.22 a%. Australia's S&P ASX 200 has slipped by 0.15%, while India's Nifty 50 has risen by 0.11%. Japan's Nikkei 225 and DJ New Zealand both saw gains of 0.32% and 0.49% respectively.
As a consequence of the dollar's strength, gold futures for April are trading at $2,174.25, a decrease of 0.48% than its previous close of $2,184.70. Crude oil prices are also trading lower, with both Brent Crude and WTI Crude Futures for May slipping by 0.69% and 0.73% respectively to $85.19 and $80.48.
Key economic data to be released later in the day include retail sales figures from February for the UK and Ifo Business Climate readings for March from Germany. Fourth quarter current account data from Switzerland and the Confederation of British Industry's Industrial Trend Orders for March are also scheduled for release. Observers are also keenly anticipating speeches from key ECB officials for signals on future monetary policy. Major corporate earnings updates from Heidelberg Cement, X5 Retail Group, and Secunet are due from the region.
