An Insight into European and Global Markets by Rae Wee
European markets are expected to open cautiously on Friday as investors brace for potential U.S. tariffs on Mexico and Canada. The Mexican peso and Canadian dollar have faced losses, while EUROSTOXX 50 futures dipped 0.15% in Asian trading.
Amidst this, the yen is poised for its strongest January performance in seven years, supported by expectations of rate hikes by the Bank of Japan. Meanwhile, technology companies are aiming for a strong finish, rebounding from a dip earlier in the week due to a new low-cost artificial intelligence model from a Chinese startup.
Nasdaq futures are up 0.5% with executives predicting robust sales growth. However, all eyes are on Trump's looming announcements, including a potential 100% tariff threat against BRICS countries and fresh tariffs on China.
In addition, markets will analyze preliminary inflation data from Germany and France, as central banks consider further rate cuts. The U.S. core PCE price index release is eagerly awaited for insight into inflation trends and the Federal Reserve's future rate decisions.
Global central banks are expected to set their unique policy paths in 2025, as the markets digest key events including France and Germany's CPI reports and the U.S. core PCE price index for December.