FX.co ★ European Stocks Set for Cautious Open

European equity markets were set for a muted open on Friday after two consecutive sessions of gains, as investors weighed recent central bank decisions against continued weakness in oil prices. On Thursday, the Bank of England kept interest rates on hold but warned that an extended conflict in the Middle East could compel it to tighten policy. Earlier in the week, both the Federal Reserve and the Bank of Japan opted to raise rates. Meanwhile, oil prices fell for a third straight session as Saudi Arabia moved to restore flows through its East–West pipeline, and President Donald Trump prepared for meetings with Gulf leaders next week. Investors in Europe will also be watching a slate of new economic releases — including Germany’s PPI, UK retail sales, and the Eurozone current account — for further insight into the region’s economic outlook. In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 were broadly flat.