European stocks are seen opening largely unchanged on Friday, as a slew of data released overnight raised concerns about the strength of the U.S. economy. Banks could be in focus after the European Banking Authority recommended asset quality reviews on major EU banks, which will delay the next stress tests until 2014.
The dollar is holding firm near a 10-month high versus major currencies after San Francisco Federal Reserve President John Williams indicated that the Fed may slow the pace of its asset purchases as early as this summer if various labor market indicators continue to register appreciable improvement.
Separately, Dallas Fed President Richard Fisher urged the central bank to slow purchases of mortgage-backed securities, citing the recent pick-up in home values and housing construction. Fed Chairman Ben Bernanke is due to update markets on his thinking in testimony on the outlook for the U.S. economy before the Joint Economic Committee of Congress on May 22.
Meanwhile, U.S. reports on consumer sentiment and leading economic indicators may grab investor attention in today's session. Closer home, eurozone construction output data for March is slated for release later in the session.
Asian markets are trading mixed amid fresh concerns about the state of the U.S. economy. Benchmark indexes in India, New Zealand, Singapore and Taiwan are subdued, while stocks elsewhere are posting modest gains. The markets in Hong Kong and South Korea are closed for holidays.
On the economic front, core machinery orders in Japan climbed a seasonally adjusted 14.2 percent in March from the previous month, the Cabinet Office said, beating forecasts for an increase of 3.5 percent following the downwardly revised 4.2 percent increase in February. On a yearly basis, core machine orders added 2.4 percent.
In domestic corporate news, Dutch lender ING Group N.V. said it has agreed to sell its direct stake in Sul América S.A. to International Finance Corp for about $200 million as part of its restructuring plan to divest all its insurance and investment management operations.
The European markets ended Thursday's session with mixed results, as weak U.S. data added to worries over eurozone growth. The Euro Stoxx 50 index of eurozone bluechip stocks eased 0.1 percent and the Stoxx Europe 50 index, which includes some major U.K. companies, slid 0.2 percent. Across Europe, France's CAC 40 and the U.K.'s FTSE 100 edged down about 0.1 percent each and the SMI of Switzerland dropped 0.7 percent, while the German DAX ended marginally higher.
U.S. stocks fell overnight, with a disappointing batch of U.S. economic data on initial jobless claims, housing starts and regional manufacturing activity along with comments from a Federal Reserve official weighing on the markets. The Dow dropped 0.3 percent, the tech-heavy Nasdaq slid 0.2 percent and the S&P 500 shed half a percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.