European markets are likely to rise on Friday as traders look for a partial rebound from Thursday’s sell-off, with the monetary policy outlook remaining firmly in focus.
The pan-European Stoxx 600 closed up 1.6% in the previous session, with technology stocks slipping 2.9%, leading to losses as global market sentiment deteriorated after disappointing December retail sales figures from the United States, reviving concerns over a possible recession let.
Investors are increasingly concerned that the US Federal Reserve will continue to hike interest rates despite signs that inflation is slowing.
Both Dow Jones industry average and the S&P500 posted a third straight day of losses on Thursday, and US stock futures were cautiously higher in early premarket trading on Friday.
Asia-Pacific stocks were mostly higher on Friday as investors digested Japanese inflation data that showed nationwide core consumer prices rose 4% annually in December, the fastest inflation rate since 1981.
Friday marks the conclusion of the World Economic Forum in Davos, Switzerland, where policymakers and CEOs discussed key issues related to business, financial markets, geopolitics and climate change.
CNBC will speak with a host of delegates on the final day of the summit, including former Treasury Secretary Larry Summers, European Central Bank President Christine Lagarde, Bank of Japan Governor Haruhiko Kuroda, French Treasury Secretary Bruno Le Maire and Executive Secretary of the… International Monetary Fund Kristalina Georgieva, among others.
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