London – European markets are expected to open mixed on Friday, as a global stock selloff slows down and investors await key U.S. inflation data.
Key Points:
– Pan-European Stoxx 600 has closed lower for two consecutive sessions amid tech stock downturn
– U.S. personal consumption expenditures price index due at 8:30 a.m. ET, expected to show 2.5% annual and 0.1% monthly growth
– Earnings season continues, with Mercedes Benz narrowing profit margin forecast due to subdued Asian demand
– Asia-Pacific markets rebounded Friday, with Tokyo’s headline inflation slowing to 2.2% in July
– U.S. stock futures higher in early hours
Investors Seek Rate Cut Signals
Investors are eagerly awaiting the U.S. inflation data release, seeking support for high expectations of a September rate cut. The data will provide insight into the current state of the economy and influence future monetary policy decisions.
Earnings Season Updates
Mercedes Benz has narrowed its annual profit margin forecast due to subdued Asian demand, while Stellantis reported a 48% decline in first-half net profit due to weaker U.S. sales. Autos firms are reporting a range of struggles in their latest results.
Market Rebound
Asia-Pacific markets largely rebounded Friday, with Tokyo’s headline inflation slowing slightly to 2.2% in July from 2.3% in May. U.S. stock futures were higher in the early hours, indicating a potential rebound in European markets.