European equities are anticipated to open slightly higher on Friday as investors await further information on China's impending stimulus measures, expected to be unveiled at the conclusion of a session held by China's National People's Congress (NPC) Standing Committee. These measures may potentially include strategies to support local government debt and enhance consumer spending.
In the United States, the economic schedule remains relatively light for the day. However, market activity may see fluctuations following the release of the University of Michigan's preliminary consumer sentiment report for November. Notably, this report will provide insights into consumer expectations regarding inflation.
Early gains in Asian markets dissipated, resulting in a mixed performance amid the prevailing uncertainty regarding U.S. tariffs under the new leadership of President Donald Trump.
The U.S. dollar experienced a decline after a tumultuous week, buoyed slightly by Republican leaders' expressed confidence on Thursday about retaining control of the U.S. House following several favorable election results.
U.S. Treasury yields edged lower after an earlier rally in the trading session. Concurrently, gold prices slipped below $2,700 per ounce, retracing gains made the previous day. This dip followed Federal Reserve Chair Jerome Powell's comments indicating that future rate decisions will be data-dependent in terms of both pace and final target.
Oil prices declined during Asian trading but remained poised for a weekly gain. Meanwhile, U.S. stock markets closed higher overnight, with notable declines in Treasury yields and the dollar, following the Federal Reserve's decision to implement a 25-basis point rate cut and signal further reductions are not off the table.
Fed Chair Powell, in a post-meeting press conference, underscored that rate decisions are not predetermined, noting the central bank will adopt a "meeting by meeting" approach to navigate risks related to its dual mandate.
Amid the anticipation of a "Trump 2.0 era" and "America First" economic policies, some investor concern regarding forthcoming tariff hikes remained, particularly their potential impact on inflation and interest rates.
In the U.S., the tech-focused Nasdaq Composite surged by 1.5%, and the S&P 500 increased by 0.7%, marking a second consecutive record finish. In contrast, the Dow closed slightly lower. European stocks rebounded on Thursday, fueled by gains in technology and resource sectors. This was supported by the Bank of England's decision to lower interest rates, accompanied by a cautionary note that further rate cuts might proceed gradually.
The pan-European STOXX 600 rose by 0.6%, with Germany's DAX increasing 1.7% and France's CAC 40 advancing 0.8%. Meanwhile, the U.K.'s FTSE 100 dipped by 0.3%.
