European Shares Poised For Cautious Start

(RTTNews) - European stocks are seen opening flat to slightly lower on Friday as inflation concerns persist and the United States has approved the potential sale of 48 F-35 Lightning II Joint Strike Fighters to Saudi Arabia, marking a significant policy shift from the U.S.

Technology stocks could be in focus today following reports that SK Hynix and Intel are in early talks to produce memory chips together at Intel's idle Ohio complex in the United States.

In economic releases, U.K. retail sales data as well as speeches by Federal Reserve officials Michelle Bowman and Jeffrey Schmid will be in the spotlight as the session progresses.

Asian markets were broadly higher, following an overnight rally on Wall Street. The Japanese yen sank against its major peers despite the Bank of Japan raising its key benchmark rate by 25 basis points to 1.25 percent, marking the highest level since April 1995.

China's yuan hit a four-year high ahead of the upcoming U.S.-China summit. U.S. Treasury Secretary Scott Bessent is expected to meet Chinese Vice Premier He Lifeng this weekend for final preparations ahead of the September 24 meeting at the White House between Chinese President Xi Jinping and U.S. President Donald Trump.

Gold inched up half a percent to $4,364 an ounce, after having snapped a three-day decline the previous day on the back of easing oil prices and a weaker dollar.

Brent crude futures fell more than 1 percent toward $103 a barrel, extending losses for a third session on hopes of limited supply disruption and renewed diplomatic efforts to end the conflict.

It was reported that China privately urged Iran to curb Houthi attacks after Saudi Arabia's appeal, a move that could potentially ease disruptions around the Bab el-Mandeb.

U.S. President Donald Trump stated that Washington is "hopefully toward the end" of its fighting with Iran and that he has spoken "directly" with Iranian officials.

Ahead of a planned meeting next Tuesday with leaders from six Gulf countries on the sidelines of the UN General Assembly in New York, Trump said that he is approaching a critical juncture in the Iran war over whether to resume massive attacks to bring the conflict to a close.

U.S. stocks rose sharply overnight as oil prices and bond yields retreated amid optimism surrounding Saudi Arabia's efforts to reroute crude exports through Oman and restore the East-West pipeline.

The Fed's first interest-rate hike in three years also instilled confidence in investors regarding the central bank's resolve to bring inflation under control.

In economic releases, applications for U.S. employment benefits fell to the lowest since July last week and recurring claims dropped to a more than two-year low, signaling the labor market is on a solid footing.

The tech-heavy Nasdaq Composite soared 1.7 percent, the S&P 500 climbed 1.1 percent and the narrower Dow advanced 0.6 percent.

European stocks closed firmly higher on Thursday due to declining oil prices and reduced pressure in the bond market, supported by the Fed's hawkish stance.

The pan-European STOXX 600 gained 0.9 percent. The German DAX surged 0.7 percent and France's CAC 40 climbed 0.6 percent.

The U.K.'s FTSE 100 rallied 1.2 percent as the Bank of England (BoE) held interest rates but warned that a hike may be necessary if the Iran war drags on.

The BoE also paused sales of British government bonds for the next six months and halted sales of long-dated gilts entirely as part of its quantitative-tightening program, bringing relief to a battered bond market.