European stock futures rose; UK GDP Grows in Second Quarter By Investing.com

© Reuters.

By Peter Nurse

Investing.com – European stock markets are set to open slightly higher on Friday, helped by stronger-than-expected UK growth, but gains are likely to be limited given lingering concerns of weaker growth as central banks raise benchmarks. interest rates as geopolitical risks remain.

As of 02:00 ET (06:00 GMT), the Germany contract was trading up 0.2%, France up 0.1% and the UK contract up 0.1%.

Major Wall Street indexes closed sharply lower on Thursday, dragging Asian stocks lower early Friday, with the Japanese index down 2%, and Europe is expected to follow suit.

The weakness in the United States stems from concerns that it will continue to fight aggressively against , with the weekly figure showing that the US labor market remains resilient, giving policymakers the green light to continue tightening monetary policy.

Back in Europe, Thursday’s hot print suggests it will need to get more aggressive if it is to get inflation under control at historic levels.

However, stock markets received a boost after rising 0.2% quarter-on-quarter in the second quarter, up 4.4% year on year, surprising on the upside.

There are more economic data releases to study on Friday, including and especially the September figure, which could rise nearly 10% on an annual basis.

Official data from China earlier today showed unexpected growth in September, breaking two consecutive months of declines, but a separate private survey painted a very different picture, with the country’s manufacturing PMI falling to 48.1 in September against 49.5 the previous month. .

Separately, Russian President Vladimir Putin is due to hold a Kremlin ceremony on Friday annexing the four regions of Ukraine that recently voted to join Russia in referendums condemned by Ukraine and the West.

The United States and the European Union are set to impose additional sanctions on Russia for the move, and EU energy ministers are due to meet later Friday to discuss their options.

Oil prices traded largely flat on Friday but are heading for the first quarterly decline in two years on lingering fears of a global economic slowdown as central banks dramatically tighten monetary policy to combat the ‘inflation.

Next week will see the latest meeting of the Organization of the Petroleum Exporting Countries and its allies, collectively called OPEC+, amid speculation the group will agree to cut crude production to support lower prices.

As of 2:00 a.m. ET, futures were trading slightly higher at $81.25 a barrel, while the contract rose 0.1% to $87.22.

Both benchmarks are on track to rise about 2% for the week, their first weekly gain since August, after hitting nine-month lows earlier in the week. However, they are also expected to fall around 10% this month, the fourth consecutive losing month, and losses for the quarter amount to around 23%.

Additionally, it was up 0.4% at $1,675.65 an ounce as it traded up 0.1% at 0.9823.

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