European stocks are seen opening higher on Friday as the focus shifted from inflation to ongoing economic recovery.
Asian markets gave up some early gains to trade mixed as a survey showed Japan’s factory activity expanded at a slower pace in May and activity in the service sector contracted at the fastest pace in nine months.
Japan is expected to expand a state of emergency to cover the island of Okinawa today, even as some other G7 countries begin to end coronavirus-led lockdowns.
Gold edged lower on improved risk appetite while the dollar headed for a weekly loss.
The yield on 10-year Treasuries declined after a weaker-than-expected U.S. business activity reading.
Oil edged up after three days of losses, but was set for its biggest weekly decline since March, as Iran inched closer to a revived nuclear deal.
Bitcoin started a recovery but struggled to clear $42,000 after Federal Reserve Chair Jerome Powell flagged the risks of cryptocurrencies in an unusual video message.
Separately, the Treasury Department said it is taking steps to crack down on cryptocurrency markets and transactions.
Flash Purchasing Managers’ survey results from euro area and the U.K. are due later in the session, headlining a light day for the European economic news.
Overnight, U.S. stocks closed higher to snap a three-day losing streak, as tech stocks rebounded, the prices of Bitcoin and other cryptocurrencies steadied and data showed a drop in jobless claims last week, in an indication of further progress in the labor market.
The Dow edged up 0.6 percent, the S&P 500 gained 1.1 percent and the tech-heavy Nasdaq Composite index climbed 1.8 percent.
European stocks advanced on Thursday as strong earnings and merger talks in the chip sector offset inflation worries and tapering fears.
The pan European Stoxx 600 rallied 1.3 percent. The German DAX jumped 1.7 percent, France’s CAC 40 index rose 1.3 percent and the U.K.’s FTSE 100 added 1 percent.
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