European markets set for cautiously higher open with economic data in focus

European markets are set for a modestly higher open Friday after Wall Street snapped a three-day losing streak, with attention turning to key economic data from the euro zone and U.K.

Britain’s FTSE 100 is seen just 3 points higher at 7,023, Germany’s DAX is set to climb by around 18 points to 15,388 and France’s CAC 40 is expected to add around 17 points to 6,361, according to IG data.

Stocks in Europe are set for a subdued handover from Asia-Pacific, where markets were mixed on Friday following an overnight bounce on Wall Street led by a rebound in the tech sector. U.S. stock futures are pointing to a flat open later on Friday.

Investors will be monitoring a slew of May’s flash PMI (purchasing managers’ index) readings out of the euro zone and the U.K. on Friday morning for an indication as to the health of the economic recovery across the continent. U.K. retail sales data is also due before the bell, while a flash euro zone consumer confidence reading is published at 3 p.m. London time.

European Central Bank President Christine Lagarde will hold a press conference following a Eurogroup meeting of European finance ministers at noon London time.

The European Union on Thursday agreed a deal on Covid-19 passes intended to permit tourism across the bloc this summer, as the vaccination rollout gathers pace.

Germany’s BioNTech on Thursday said the Covid-19 vaccine it developed alongside Pfizer is likely to be equally as effective against the new virus variant first discovered in India as it was against the one found in South Africa.

Earnings on Friday came from Nationwide Building Society and Richemont.

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