European stocks look set to open on a cautious note Friday as investors await a crucial meeting of U.S. and Chinese leaders at the G20 summit. Trade tensions may worsen if the efforts fail to achieve meaningful results.
Asian stocks are trading mixed after official data showed China’s manufacturing activity continued to worsen in November.
The manufacturing PMI stood at 50.0 in November, missing expectations for a score of 50.2, which would have been unchanged from the October reading.
The non-manufacturing PMI came in with a score of 53.4 – also shy of expectations for 53.8 and down from 53.9 in the previous month. The composite index posted a score of 52.8, down from 53.1 a month earlier.
Elsewhere, Japan’s factory output exceeded expectations and core consumer inflation rose in line with estimates in November, while unemployment rose slightly in October from the previous month, a slew of reports showed.
The Bank of Korea raised its benchmark interest rate for the first time in a year, reflecting concern over rising household debt and property prices.
The dollar remains subdued while oil added to overnight gains after reports that Russia had accepted the need to cut production, together with OPEC at next week’s meeting of major oil producers.
The pound remained under pressure after U.K. Prime Minister Theresa May warned of a no deal Brexit if parliament votes down her deal on December 11.
Overnight, U.S. stocks finished lower after a huge rally the day before, as minutes of the Fed’s November 8 meeting did little to alter perceptions of the central bank’s intentions on future rate hikes.
The Dow Jones Industrial Average slipped 0.1 percent, the tech-heavy Nasdaq Composite shed 0.3 percent and the S&P 500 dropped 0.2 percent.
European stocks ended Thursday’s session mostly higher, helped by the latest