LONDON — European markets were cautious on Friday morning ahead of key inflation data for the euro zone, which is expected to show a further slowdown in consumer price increases.
The pan-European Stoxx 600 index hovered just above the flatline in early trade, with basic resources adding 1.2% while utilities fell 0.4%.
Flash euro zone consumer price index inflation figures are due late morning. After France, Germany and Italy all reported better-than-expected slowdowns over the course of the week, investors are hopeful that inflation has passed its peak across the 20-member common currency bloc.
Such an eventuality could pave the way for the European Central Bank to temper its aggressive monetary policy tightening cycle and limit the continent’s economic pain.
However, minutes from the last meeting of the U.S. Federal Reserve, published earlier this week, showed policymakers stateside were seemingly unmoved from their hawkish position as they look to bring inflation back down toward target.
The U.S. ADP private payrolls report published Thursday said employers added 235,000 jobs in December — highlighting the strength of the labor market despite the Fed’s attempt to tame inflation and suggesting there is room for higher interest rates.
Investors will be closely watching Friday’s December nonfarm payrolls report for further indications as to the path of monetary policy.
Shares in Asia-Pacific ticked higher overnight, led by South Korea’s Kospi index, while U.S. stock futures pointed to a positive open on Wall Street as traders await the key jobs report.
