Stocks Market
European Stocks Expected to Open Higher on Friday Ahead of Key Data, Fed Decision and Tech Concerns
European equity markets are projected to start the day in the green as investors brace for a wave of economic releases and digest the Federal Reserve’s latest rate‑cut decision. While the Fed’s move has softened expectations for future tightening, lingering doubts about the valuation of tech stocks keep the mood cautious. Meanwhile, oil prices have steadied around $58 per barrel but remain on track for a weekly decline, and gold hovers near a seven‑week high as the market anticipates further monetary easing in the United States.
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European markets set for a green opening
Futures point to modest gains across the continent on Friday morning. The French CAC 40 is expected to rise about 0.44% at the open, while the German DAX, British FTSE 100 and the pan‑European EuroStoxx 50 are forecasted up 0.6%, 0.47% and 0.61% respectively.
Week of monetary twists and tech worries
Investors are awaiting a slew of European economic indicators after a turbulent week that saw the Federal Reserve cut rates by 25 basis points. The Fed’s more cautious outlook, signalling two possible cuts in 2026, has prompted traders to adopt a more defensive stance.
At the same time, renewed concerns around artificial‑intelligence‑related stocks are weighing on market sentiment. Valuation pressures in the tech sector continue to generate speculation about future earnings.
Oil: steady WTI but weekly loss looming
WTI crude futures hovered around $58 per barrel on Friday, yet the market remains set for a weekly decline of just over 3%. The International Energy Agency confirmed a record‑high global supply surplus, albeit a touch smaller than its previous forecast, while global inventories have hit a four‑year peak.
OPEC kept its 2026 supply‑demand outlook unchanged, hinting at a more balanced market. Geopolitical tension resurfaced earlier in the week after the United States intercepted a sanctioned Venezuelan tanker – a move Caracas termed “piracy”.
Gold: nearing a seven‑week high, eyeing weekly gains
Spot gold traded near $4,270 per ounce, skirting a seven‑week peak and on track for a weekly rally. The metal’s strength is backed by expectations of further U.S. monetary easing.
Weakening U.S. labor market data – with initial jobless‑claims rising to a two‑month high for the week of 6 December – has reinforced the market’s view that the Fed may deliver two rate cuts in 2026. Fed Chair Jerome Powell said additional hikes are “essentially off the table”, prompting traders to price in two cuts, even though the Fed’s official projections show just one.
The central bank also announced a plan to purchase roughly $40 billion of short‑term Treasury securities to ease pressure on money‑market rates, a move likely to keep short‑term yields subdued and support precious‑metal prices.