LONDON — European markets are set for a higher open on Friday to close out a busy week of corporate earnings and major central bank decisions.
The pan-European Stoxx 600 closed down 0.5% on Thursday, pulling back from the two-year highs it scaled in late January, after the Bank of England held interest rates steady with an unexpected split vote that highlighted the tricky outlook for policymakers as inflation moves closer to target.
On Wednesday, the U.S. Federal Reserve also left policy unchanged and Chair Jerome Powell poured cold water on speculation about a potential first interest rate cut in March.
Preliminary inflation data for the euro zone on Thursday revealed the annual increase in the headline consumer price index eased slightly in January, while core figures declined less than expected and services inflation held steady.
Corporate earnings have been a key driver of individual share price movement in Europe throughout the week, with the likes of Deutsche Bank, BNP Paribas, Adidas and Volvo Cars making significant moves on Thursday.
Friday is set to be quieter on the earnings front, with Spain’s CaixaBank among the biggest names reporting. No major corporate earnings or economic data releases are due from Europe.
Here are the opening calls
Britain’s FTSE 100 is set to open around 50 points higher at 7,672, Germany’s DAX is seen around 107 points higher at 16,966 and France’s CAC 40 is expected to add around 31 points to 7,620, according to IG data.
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Family offices have boomed in the last few years, thanks in part to the growing number of wealthy individuals.
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UBS told CNBC Pro that “family offices are planning the biggest modifications in strategic asset allocation for several years,” adding that this comes “at a time when inflection points spanning policy rates, inflation and economic growth appear likely.”
CNBC Pro scoured recent surveys and spoke to family office operators to find out how they’re allocating right now and in the next few years — in the face of major global shifts.
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One chief investment officer, however, sees potential in oil, naming one immediate and one longer-term investment opportunity.
“I think there is a big opportunity in geopolitics,” Jevons Global’s Kingsley Jones told CNBC’s Pro Talks on Jan. 25, naming two stocks he likes.
CNBC Pro subscribers can read more here.
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