European Shares Poised For Positive Opening Ahead Of Key US Data

(RTTNews) - European stocks are seen opening on a positive note Friday despite rising U.S.-Iran tensions and lingering uncertainty about the outlook for interest rates.

WTI crude futures hit a seven-month high at $66.80 a barrel amid the threat of a full-blown U.S.-Iran conflict.

U.S. President Donald Trump has delivered his latest ultimatum to Iran, indicating that the next 10 days will tell whether there will be an accord with Iran.

Gold headed for a weekly loss as the dollar surged to a near one-month high ahead of key U.S. economic data that could help shape Fed rate cut expectations.

Services PMI and personal income data will be in the spotlight later in the day along with other reports on fourth quarter GDP, new home sales and consumer sentiment.

An uptick in the Core PCE Price Index, the Fed's preferred inflation gauge, may temper expectations of a June Fed rate cut.

A pivotal U.S. Supreme Court ruling on the legality of Trump's signature tariffs is also expected later in the day.

Closer home, U.K. retail sales figures and S&P global purchasing managers' index (PMI) releases may garner investor attention.

Asian markets were broadly lower due to AI disruption fears, geopolitical tensions and fresh concerns about potential stress within the U.S. private credit market.

The yen weakened as data showed Japan's key inflation gauge eased to the slowest pace in two years, dampening bets on a Bank of Japan rate hike.

Overnight, U.S. stocks ended modestly lower as U.S.-Iran tensions escalated, AI disruption worries persisted, Walmart's outlook fell short of analyst estimates and Blue Owl Capital restricted investor redemptions from one of its retail debt funds, raising concerns about potential losses in the private credit market.

The Dow dipped half a percent while the tech-heavy Nasdaq Composite and the S&P 500 both fell around 0.3 percent.

European stocks ended lower on Thursday as investors weighed hawkish minutes from the Federal Reserve's January meeting and parsed weak earnings from the likes of Airbus and Renault.

The pan-European Stoxx 600 declined half a percent. The German DAX shed 0.9 percent, France's CAC 40 slipped 0.4 percent and the U.K.'s FTSE 100 gave up 0.6 percent.