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European stocks look set to open broadly lower on Friday as investors fret over a possible recession in Europe and look ahead to next week’s Jackson Hole economic symposium for directional cues. <\/p>\n
With the euro zone inflation outlook failing to improve since a July rate hike, there is uncertainty over how big will future rate hikes be. <\/p>\n
European natural gas prices continue to climb, posing upside risks to the inflation outlook and threatening to send the continent’s economy<\/span> into recession. <\/p>\n Money markets<\/span> are now fully pricing in a half percentage point ECB move in September and a 35 percent chance of a bigger 75-basis point move.<\/p>\n Asian markets traded mixed as investors analyze conflicting economic signals from the U.S.<\/p>\n The dollar hit a one-month high and Treasury yields drifted higher, keeping gold under pressure. Oil prices slipped after a two-day rally on signs of improving U.S. demand. <\/p>\n Retail sales and public sector finance data from the U.K. are due later in the session, headlining a light day for the European economic news.<\/p>\n U.S. stocks struggled for direction before ending slightly higher overnight after the release of disappointing home sales data and better-than expected jobless claims and manufacturing readings. <\/p>\n The Dow finished marginally higher, while the tech-heavy Nasdaq Composite and the S&P 500 both edged up around 0.2 percent. <\/p>\n European stocks also closed higher on Thursday as data showed Euro zone inflation reached a new record high of 8.9 percent year-on-year in July.<\/p>\n The pan European Stoxx 600 gained 0.4 percent. The German DAX and France’s CAC 40 index rose about half a percent each while the U.K.’s FTSE 100 added 0.4 percent. <\/p>\n<\/p>\n Market Analysis<\/p>\n<\/div><\/div>\n