European stocks may open higher on Friday as investors brace for the implementation of American and Chinese tariffs.
The U.S. tariffs on 34 billion dollars worth of Chinese imports went into effect just after midnight Thursday, with China saying it is “forced to make a necessary counterattack”.
U.S. President Donald Trump said the U.S. might seek tariffs on more than $500 billion of Chinese goods, about the amount of total goods the U.S. imported from China last year, if China responds with retaliatory tariffs.
Asian stocks are trading mixed, with upbeat U.S. economic data released overnight helping limit the downside.
The dollar was trading flat against the yen after the release of June FOMC meeting minutes and ahead of the monthly jobs report due later in the day, while oil prices traded flat to slightly higher on U.S. government data showing an unexpected jump in crude oil stockpiles.
In economic releases, U.K. permanent job placement growth moderated at the end of the second quarter, the Report on Jobs published by IHS Markit and the Recruitment & Employment Confederation showed earlier today.
Permanent staff appointments increased markedly in May, but the pace of expansion was the softest seen in eight months. Temporary billings expanded at the weakest rate in three months.
Industrial production figures from Germany are due later in the day, with economists forecasting production to grow 0.3 percent sequentially in May, in contrast to a 1 percent fall in April.
Overnight, U.S. stocks finished broadly higher, led by gains in technology and healthcare companies as reports on services sector activity and private sector employment painted a positive picture of the economy.
The Dow rose 0.8 percent as markets reopened after the Independence Day holiday. The tech-heavy Nasdaq Composite rallied 1.1 percent and the S&P 500 advanced 0.9 percent.