European markets are set to open higher on Friday to start the new trading month after a winning February, with euro zone inflation data due mid-morning.
The pan-European Stoxx 600 index closed 0.1% higher on Thursday after fresh data showed the core U.S. personal consumption expenditures price index — the Federal Reserve’s preferred measure of inflation — rose in line with expectations by 0.4% monthly and 2.8% annually in January.
Focus will turn Friday to February’s flash euro zone inflation reading, expected at 10 a.m. London time, with economists in a Reuters poll predicting the consumer price index rose 2.5% year on year, down from 2.8% in January.
German consumer price inflation on Thursday came in line with forecasts at 2.7% year on year.
The European Central Bank will be watching Friday’s reading closely as it charts its course of future interest rate cuts, with economic growth remaining stagnant across much of the bloc. The market expects the ECB to begin cutting in June, alongside the Fed.
