The major European index futures are pointing towards a higher opening for the markets on Friday. Global cues are also firm, with the U.S. market rallying overnight on the back of a better-than-expected preliminary reading on economic growth and the Asian markets trading higher on Friday. However, some degree of profit taking may be expected in the European markets following gains in the past three trading sessions. The markets may also react to a few key economic reports to be released during the U.S. session later in the day. A fall in oil prices is also likely to lift investor sentiment.
On Thursday, the Dow jumped 1.9% to finish at 11,715, the Nasdaq gained 1.2% to end at 2,411 and the broader S&P 500 advanced 1.5% to close at 1,300. In Asia Friday, Australia's All Ordinaries index is advancing 1.1%, China's Shanghai composite index is gaining 0.3%, Japan's Nikkei 225 index is adding 2.2%, South Korea's KOSPI is edging up 0.1% and Hong Kong's Hang Seng index is rising 1.6%.
Oil prices fell on Thursday after a three-day winning streak and amid reports that said the International Energy Agency and the U.S. government were ready to release oil from emergency reserves if Tropical Storm Gustav disrupted U.S. oil production. In the Asian session Friday, Brent crude for October settlement was gaining $1.06 to $115.23 a barrel by 10:56 p.m. ET. The contract shed $2.05 to settle at $114.17 a barrel on Thursday on London's ICE Futures Europe exchange.
The major economic data scheduled for release in the European region include the Euro-Zone consumer price index and the unemployment rate, and the Italian consumer price index and retail sales. Meanwhile, the U.S. traders await the release of Personal consumption expenditure data.
The European markets finished higher for a third day on Thursday. The bigger-than-expected revision to second quarter U.S. GDP data along with a drop in crude oil prices lifted investor sentiment.
The FTSEurofirst 300 index of pan-European blue chips closed up 1.4% at 1,190 and the narrower DJ Stoxx 50 index rose 1.5% to finish at 2,911. Around Europe, the U.K.'s FTSE 100 index gained 1.32% to 5,601, while France's CAC 40 index climbed 2.02% to 4,461 and Germany's DAX index gained 1.57% to 6,420.
On the currency front, the euro gained against the dollar and the pound, but it weakened against the yen in the Asian session on Friday. At about 10:15 pm ET, the euro was quoted at $1.4752 and at 0.8055 pound. Against the yen, the euro weakened to 160.65 by about 9:55 pm ET.
In the European markets, Aeroports de Paris, Benetton, CA Immobilien Anlagen, Carrefour, Cie. Financiere Tradition, Dexia, Liechtenstein Landesbank, Norddeutsche Affinerie, and PPR are scheduled to report earnings.
Bouygues may rise after the construction company reported that second-quarter profit rose 2% to EUR 477 million and raised its full-year sales target slightly to EUR 32.5 billion from EUR 32.4 billion, but Compania Espanola de Petroleos may decline after Spain's second- largest oil company said first-half net income fell 30% to EUR 283.5 million, hurt by higher crude prices and a weaker dollar.
Lagardere is likely to rise after France's largest publisher said that first-half profit at its media business rose 3.5% on lower costs and higher book sales in the U.S. and Parmalat, Italy's biggest food company, may fall as the company said that its expects 2008 EBITDA to fall 5% after reporting first-half profits of EUR 427 million, up from EUR 244 million last year.
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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.