European stocks are anticipated to open on a mixed note this Friday, following significant gains in the previous trading session.
A cautious sentiment might dominate as strong economic data has mitigated fears of an imminent U.S. recession, leading traders to temper their expectations for aggressive Federal Reserve interest-rate cuts this year.
Attention may be drawn to the University of Michigan's preliminary report on U.S. consumer sentiment for August, which includes important data on consumers' inflation expectations.
The European economic calendar is relatively light, with only U.K. retail sales data and Eurozone trade balance figures likely to catch investors' eyes.
Asian markets posted gains, driven by Hong Kong, South Korea, and Japan, with significant boosts from the technology sector.
The dollar stabilized against major currencies, and gold prices dipped slightly as traders adjusted their expectations for rate cuts.
Oil prices edged lower but are poised for a weekly gain, alleviating concerns of a recession in the top oil-consuming nation.
U.S. stocks surged overnight, with two-year Treasury yields marking their most considerable rise in four months. This was spurred by robust retail sales data and lower-than-expected weekly jobless claims, which helped ease recession fears. Strong earnings reports from Walmart and Cisco also bolstered investor sentiment.
The Nasdaq Composite soared 2.3%, and the S&P 500 rallied 1.6%, achieving their best six-day gain since November 2022. The Dow advanced 1.4%, marking its fifth gain in the last six sessions.
European stocks experienced a third consecutive session of gains on Thursday, as positive data raised hopes for a soft landing for the global economy.
The pan-European STOXX 600 advanced 1.2%. The German DAX surged 1.7%, France's CAC 40 climbed 1.2%, and the U.K.'s FTSE 100 added 0.8%.
