European stocks may open a tad higher on Friday even as trade worries persist and investors await the U.S. employment report for clues about the pace of interest rate rises.
Beijing has vowed to retaliate if Washington increases tariffs to 25 percent from 10 percent on $200 billion in Chinese imports.
U.S. employment is expected to increase by 190,000 jobs in July, while the unemployment rate is expected to edge down to 3.9 percent. Strong numbers may push yields and the dollar higher and add to fears of more interest rate hikes.
Asian stocks edged higher in cautious trade and the dollar hovered near two-week high, while political worries in Italy weighed on the euro.
The British pound remained weak after BoE Governor Mark Carney said monetary policy needed to “walk not run”. Oil prices edged lower after strong gains in the previous session.
In economic releases, a survey from Caixin showed earlier today that China’s services sector continued to expand in July, albeit at a slower pace.
The PMI stood at 52.8, down from 53.9 in the previous month as new orders expanded at their weakest rate in more than two and a half years.
Retail sales and final services Purchasing Managers’ survey results from euro area are due later in the session, headlining a busy day for the European economic news.
Overnight, U.S. stocks closed mostly higher as Apple extended the previous session’s gains to close at a fresh record high following its upbeat fiscal third quarter results and guidance.
The tech-heavy Nasdaq Composite climbed 1.2 percent and the S&P 500 added half a percent while the Dow slid marginally, weighed down by escalating trade conflict between the world’s two biggest economic powers.
European markets fell on Thursday as trade worries persisted and the Bank of England raised interest rates despite the risk of a possible ‘no-deal Brexit.’ The pan-European Stoxx Europe 600 index declined 0.8 percent.
The German DAX tumbled 1.5 percent, France’s CAC 40 index shed 0.7 percent and the U.K.’s FTSE 100 dropped 1 percent.
by RTTNews Staff Writer
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