European stock markets are poised to open slightly higher on Friday, maintaining a positive outlook from the previous session. This optimism is fueled by hopes of stabilizing global interest rates. However, the primary focus remains on the upcoming U.S. payrolls data scheduled for later in the day.
At 03:00 ET (07:00 GMT), the German DAX futures contract is trading 0.3% higher, the CAC 40 futures in France have gained 0.3%, and the FTSE 100 futures contract in the U.K. has risen by 0.1%.
Global Rates Stabilize
European equities have been enjoying a robust week, taking cues from Wall Street’s performance. This rally is underpinned by declining global yields, surprisingly strong corporate earnings, and crucially, the belief that several leading central banks have completed their cycles of raising interest rates.
The Federal Reserve recently maintained unchanged interest rates, followed by the Bank of England, while the European Central Bank did the same last week.
The German DAX is on track to post weekly gains of 3.1%, the CAC 40 in Paris is up by 3.9%, and the FTSE 100 in the U.K. has risen by 2.1%.
U.S. Jobs Report in the Spotlight
Despite this optimism, the positive sentiment could be disrupted by a stronger-than-expected U.S. jobs report, as it’s a key factor the Federal Reserve considers when making monetary decisions.
Analysts anticipate that the U.S. economy added 188,000 jobs in October, a decrease from the 336,000 added in September. The unemployment rate is expected to remain steady at 3.8%, with average hourly earnings predicted to have increased by 0.3% in October, following a 0.2% gain in September.
In Europe, the data calendar includes French September industrial production figures and eurozone September unemployment data.
Societe Generale’s Earnings Bolstered by Investment Bank
In corporate news, Societe Generale, France’s third-largest listed bank, reported quarterly earnings that exceeded expectations. The bank’s investment division showcased a resilient performance, offsetting the challenges faced by its French retail branch.
Swiss Re also reported a net profit in the third quarter, benefiting from a lower volume of significant natural catastrophe claims.
Apple, after the U.S. closing on Thursday, announced sales and profits for the fiscal fourth quarter that surpassed expectations. This was driven by increased iPhone sales and a $1 billion boost in services revenue, which counterbalanced notable declines in Mac and iPad sales. However, the tech giant’s sales forecast for the holiday quarter disappointed due to weak demand for iPads.
Crude Oil’s Weekly Losses and Other Market Movements
Crude oil prices saw a slight increase on Friday, following substantial gains in the previous session. This surge is attributed to growing confidence that the Federal Reserve has concluded its series of interest rate hikes, which weakened the dollar.
At 03:00 ET, U.S. crude futures traded 0.3% higher at $82.73 per barrel, while the Brent contract climbed 0.2% to $87.04 per barrel. Both benchmarks saw an increase of more than $2 per barrel on Thursday. Nevertheless, both crude contracts are set to record weekly losses of over 3%, marking their second consecutive losing week. This was partly due to a lack of escalation in the Israel-Hamas conflict, which alleviated concerns about supply disruptions in this oil-rich region.
Additionally, gold futures rose by 0.1% to $1,995.10 per ounce, while EUR/USD traded 0.1% higher at 1.0629.
