Earnings, economic data on the agenda

LONDON — European markets opened cautiously higher on Friday as investors digest a fresh batch of corporate earnings and await key economic data outside the euro zone.

Britain’s FTSE 100 is seen about 16 points higher at 7,361, Germany’s DAX is expected to add about 69 points to 13,351 and France’s CAC 40 is expected to gain about 32 points to 6,371.

Asia-Pacific shares were mixed overnight, with Hong Kong’s Hang Seng index falling more than 2% as tech stocks took a hit. Shares in mainland China also retreated after Chinese leaders signaled on Thursday that Beijing is unlikely to try to boost the economy and downplayed the country’s gross domestic product target of “around 5.5 %”.

U.S. stock futures rose in early premarket trading on Friday as strong quarterly reports from major technology companies, including Amazon and Apple, supported risk-on sentiment among investors.

The upbeat sentiment in the United States comes despite a surprise 0.9% drop in US GDP in the second quarter, confirmed by the Bureau of Economic Analysis on Thursday, which deepened fears of a possible recession.

On Friday, investors’ attention in Europe will focus on initial second-quarter GDP figures and July harmonized inflation readings outside the eurozone, due at 10am London time.

Corporate earnings continue to drive individual share price movement in Europe. Standard Chartered, Santander, Renault, Air France-KLM, BNP Paribas, AstraZeneca, Engie and Swiss Re were among the major players reporting before the bell on Friday.

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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!