FX.co ★ European Markets Set for Muted Open

European stock markets are poised to experience minimal movement as trading begins on Friday, suggesting that the recent upward trend in global equities may be losing its steam. Nonetheless, regional indices are still expected to conclude the week with gains, offsetting the losses incurred earlier this month. This recovery is largely buoyed by the ongoing anticipation of further interest rate cuts from the US Federal Reserve, which continues to bolster risk assets. Concurrently, minutes from the most recent European Central Bank meeting revealed that policymakers are not in a hurry to lower rates, given the prevailing uncertainty. Investors are now focused on an array of significant regional data releases, including inflation reports from Germany, France, Italy, and Spain. In corporate developments, Deutsche Boerse AG is engaged in discussions to acquire the European fund distribution platform Allfunds Group Plc, in a transaction valued at $6.1 billion, involving both cash and stock components.