European markets are poised for a lower open on Friday as investors digest a packed week of corporate earnings, a key interest rate decision from the European Central Bank, and the positive outcome of the US-China summit.
Futures data from IG Group indicates a negative start to the final trading day of the week.
The UK’s FTSE 100 is expected to open 0.3% lower, Germany’s DAX and Italy’s FTSE MIB are seen down around 0.2%, and France’s CAC index is projected to slip by about 1%.
Markets react to ECB hold and stronger GDP
The cautious sentiment comes as traders react to a flurry of significant economic news.
On Thursday, the European Central Bank held its key deposit facility rate steady at 2% for the third consecutive time, a move that was widely anticipated by the market.
In a more positive development, flash data from Eurostat showed the euro zone economy grew by a better-than-expected 0.2% in the third quarter, narrowly beating forecasts of 0.1%.
The stronger growth figure, however, was not enough to lift the overarching mood of caution.
US tech giants provide a bright spot
While European futures are pointing lower, strong earnings from US tech giants provided a positive cue from Wall Street.
After the close on Thursday, Amazon reported that its cloud computing revenue surged 20% in the third quarter, beating estimates and sending its shares soaring more than 13% in after-hours trade.
Apple also posted strong fiscal fourth-quarter results, lifting its shares by about 3%.
The earnings calendar is quieter in Europe on Friday, but investors will be watching for results from US oil majors Chevron and Exxon Mobil later in the day.
Geopolitics and commodities in focus
Global markets are also continuing to assess the outcome of the high-stakes meeting between US President Donald Trump and Chinese President Xi Jinping.
The summit concluded with a one-year agreement on rare earths and a US commitment to cut fentanyl-related tariffs on China, providing some relief from trade tensions.
In the commodity space, oil is on track for its third straight monthly decline, with Brent crude futures trading down at $60.24 a barrel.
Gold, a traditional safe-haven asset, was also volatile, falling below the key $4,000 level on Thursday before recovering to trade around $4,025 an ounce.
Asian markets rally on US-China truce
The mood in Asia was more upbeat overnight, with Japanese stocks leading gains as investors in that region reacted positively to the de-escalation in the US-China trade dispute.
Adding to the tech narrative, Korean semiconductor giant Samsung announced plans to purchase and deploy a cluster of 50,000 Nvidia GPUs to enhance its chip manufacturing capabilities, signaling continued heavy investment in the sector.
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