FX.co ★ European Markets Set to Open Lower

European equity markets were poised for a modest dip at Friday's opening as investors considered the latest developments in global trade and awaited crucial US labor data. The mood was cautious following a phone conversation between US President Donald Trump and Chinese President Xi Jinping, where both leaders agreed to resume trade talks. However, the absence of tangible progress kept the markets uneasy. Attention is now focused on the forthcoming US nonfarm payrolls report, which is anticipated to offer vital insights into the US economy's health and potentially shape expectations of a Federal Reserve rate cut later in the year. In Europe, the European Central Bank (ECB) cut rates by 25 basis points on Thursday and downgraded its inflation projections for 2025 and 2026, bolstering the argument for a more supportive monetary policy. Investors will also be absorbing various regional economic reports, including figures on the Eurozone GDP, retail sales, and employment. In premarket activity, Euro Stoxx 50 and Stoxx 600 futures dipped by 0.2% and 0.1%, respectively.