Looking ahead at European and global markets, Friday brings a series of Purchasing Managers' Index (PMI) readings. Investors in Germany are anticipating a general election on Sunday following the collapse of Chancellor Olaf Scholz's coalition.
The Eurozone and Britain will release their February PMI figures before the U.S. The data may reflect the impact of businesses rushing orders ahead of potential import duties, possibly related to Donald Trump's policies.
Expectations for Eurozone PMIs are positive, showing growth due to an upturn in services and an easing of the manufacturing downturn.
In the U.S., focus will be on the sustainability of the recent expansion in the manufacturing sector.
Later in the day, the UK will provide January retail sales data, with expectations of improved consumer spending compared to December.
A recent survey indicated that British consumers are feeling slightly more optimistic, likely influenced by the Bank of England's interest rate cut and improved expectations for household finances.
The upcoming German election holds significance for a conservative-led coalition looking to revive the economy and potentially facing challenges from populist parties.
The conservative CDU/CSU bloc, led by Friedrich Merz, is forecasted to win but would require one or two partners to govern effectively.
In market updates, the euro remained stable against the dollar. In Asia, MSCI’s index of Asia-Pacific shares outside Japan rose to a three-month high, driven by Chinese stock market gains in technology and artificial intelligence sectors.
Hong Kong's Hang Seng Index reached a three-year high, with the Hang Seng Tech Index showing significant growth compared to the S&P 500.
Investment banks are showing more interest in Chinese investments, signaling a shift in sentiment towards China after years of caution.
Key market events on Friday include: - Preliminary PMI readings in Eurozone, UK, and U.S. (February) - UK retail sales data (January) - Speeches by Federal Reserve Vice Chair Philip Jefferson and European Central Bank board member Philip Lane.