European Shares Seen Up On Stimulus Bets

European stocks may open higher on Friday as recession worries ebbed and investors have increased bets that the European Central Bank will announce a package of stimulus measures at its next policy meeting in September.

Asian markets found some footing as encouraging retail sales figures from the U.S. helped ease some concerns about a recession in the world’s biggest economy.

There is pressure on Chinese officials to boost stimulus after credit growth tumbled to the second-lowest amount this year in July. As global growth falters, there is now talk of aggressive stimulus from all the major central banks.

The Federal Reserve could cut rates by as many as 50 basis points at its next meeting in September.

European Central Banker Olli Rehn on Thursday flagged the need for a significant easing package in September to support the flagging euro zone economy.

Mexico’s central bank cut its benchmark interest rate Thursday for the first time in over five years, citing slowing economic growth.

Inversion of Canada’s yield curve by the most in nearly two decades is threatening to coerce the Bank of Canada to act.

Meanwhile, there are conflicting messages on the Sino-U.S. trade war. U.S. President Donald Trump said the U.S. is having very good discussions with China and the trade dispute would be fairly short.

On the other hand, Beijing vowed to counter the latest tariffs on $300 billion of Chinese goods but called on the United States to meet it halfway on a potential trade deal.

The U.S dollar maintained its bullishness after the release of an upbeat retail sales report while oil prices rose in Asian trading after two days of declines.

In economic releases, foreign trade data from euro area is due later in the session, headlining a light day for the European economic news.

Across

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