(RTTNews) – European shares are likely to settle lower at the open on Friday as investors await the last key US inflation data before Christmas.
The November personal consumption expenditure index will be announced later in the day, with analysts expecting an increase of 0.2 percent on a monthly basis.
The Fed’s preferred inflation gauge, which will be released along with a report on personal income and spending, could provide important clues to the Federal Reserve’s future policy.
Asian markets posted modest gains on cautious trading and the dollar hovered around a four-month low, while gold hit its highest level in almost three weeks on growing expectations that the Fed will cut interest rates early next year.
Oil prices rose about 1 percent and were expected to post a second weekly increase due to nervousness over the safety of shipping in the Red Sea.
Meanwhile, Angola announced it will leave OPEC after 16 years, highlighting tensions within the producer group.
US stocks rose markedly overnight, a day after the major indexes suffered their worst daily sell-off in months.
Investors digested a wave of data showing lower-than-expected GDP growth in the third quarter, downward revisions to both headline and core PCE inflation, historically low unemployment claims and a weakening of regional business activity.
The Dow Jones gained 0.9 percent, the tech-heavy Nasdaq Composite rose 1.3 percent and the S&P 500 rose 1 percent.
European shares closed lower on Thursday after two days of gains.
The pan-European STOXX 600 fell 0.2 percent. Germany’s DAX and Britain’s FTSE 100 both fell about 0.3 percent, while France’s CAC 40 fell 0.2 percent.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
