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European stocks are seen opening broadly higher on Friday as strong U.S. GDP growth and cooling inflation bolstered the case for rate cuts. <\/p>\n
PCE data, due out later in the day is expected to show inflation eased to 2.5 percent last month, edging closer to the Fed’s 2 percent target.<\/p>\n
Markets have raised their expectations for three rate cuts by the end of the year, according to the CME FedWatch tool.<\/p>\n
The yen remained stronger ahead of the Bank of Japan’s two-day policy meeting, concluding on Wednesday with board members likely to discuss the possibility of raising interest rates and outline details on tapering bond buying gradually. <\/p>\n
Elsewhere, investors expect two interest rate decisions from the Bank of England by December, but next week’s decision remains on a knife edge.<\/p>\n
Asian markets<\/span> traded mixed, and the dollar held steady while the U.S. 10-year yield was little changed in Asian trade after slipping four basis points on Thursday. <\/p>\n Gold held near a three-week low after analysts reiterated their confidence in a soft landing for the U.S. economy<\/span>. <\/p>\n Oil edged up but was on track for a third straight week of decline on China demand concerns. <\/p>\n U.S. stocks fluctuated before ending mixed overnight as strong Q2 GDP data offset more tech weakness.<\/p>\n Data showed the U.S. economy grew at an estimated 2.8 percent annual rate from April through June, double the rate from the prior quarter.<\/p>\n Inflation pressures subsided, with the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increasing at a 2.9 percent rate, down from the prior reading of 3.7 percent in the first quarter.<\/p>\n Durable goods orders plummeted in June while jobless claims fell more than last week, other reports revealed.<\/p>\n The Dow edged up 0.2 percent while the S&P 500 gave up half a percent and the tech-heavy Nasdaq Composite shed 0.9 percent.<\/p>\n European stocks closed lower on Thursday amid jitters over tech companies’ growth and concerns over weakening Chinese demand.<\/p>\n A string of disappointing earnings and weak business<\/span> sentiment data from Germany also weighed on markets.<\/p>\n The pan European STOXX 600 closed 0.7 percent lower after hitting its lowest for over two months intraday.<\/p>\n The U.K.’s FTSE 100 gained 0.4 percent while the German DAX dipped half a percent and France’s CAC 40 fell 1.2 percent. <\/p>\n<\/p>\n<\/div>\n