European Shares Seen Higher At Open; US Tariff Ruling Awaited

(RTTNews) - European stocks look set to open on a positive note Friday, even as overall gains may remain modest as investors await U.S. nonfarm payrolls data later in the day for direction ahead of the Federal Reserve's policy meeting later this month.

Economists expect employment to increase by 60,000 jobs in December after an increase of 64,000 jobs in November. The unemployment rate is expected to edge down to 4.5 percent from 4.6 percent.

Markets currently expect the Fed to leave interest rates at its January 27th-28th meeting but expect a rate cut of at least quarter point in the coming months.

As geopolitical tensions rise and economic uncertainties mount, the University of Michigan's preliminary reading on consumer sentiment in January may also attract attention.

Days after U.S. President Donald Trump underlined Greenland's strategic importance to the U.S., Denmark has instructed its armed forces to respond immediately to any foreign incursion into Greenland, Danish media reported.

Asian stocks were mostly higher in cautious trade as investors digested inflation data from China and braced for a U.S. Supreme Court ruling on the legality of President Trump's sweeping tariffs.

Data showed China's consumer inflation accelerated at the fastest pace in nearly three years in December, driven mainly by higher food costs.

The producer price index fell 1.9 percent year-on-year in the month, reinforcing expectations for further policy support.

Japan's Nikkei index was up more than 1 percent after China said export control on dual-use items to Japan won't impact civilian use and that it remains committed to the stability and security of global production and supply chains.

The dollar traded higher as the U.S. Senate advanced a resolution aimed at curbing Trump's ability to take further military action against Venezuela.

In another development, Trump has ordered the purchase of $200 billion in mortgage bonds with the goal of easing housing costs through lower interest rates.

Gold traded lower around $4,465 an ounce in Asian trade. WTI crude futures extended gains after climbing more than 3 percent overnight on fears of supply disruptions amid prospects of Russia-related sanctions, Trump's seizure of Russian oil tanker, unrest in Iran, Iraqi nationalization moves, and a drone attack on a Russia-bound oil tanker near Turkey's coast in the Black Sea.

Overnight, U.S. stocks ended mixed in directionless trade as heavyweight technology and semiconductor stocks came under selling pressure, offsetting gains in the defense sector after President Trump demanded a $500 billion increase in annual defense spending.

In economic news, data showed first-time claims for U.S. unemployment benefits rose moderately last week amid a relatively low number of layoffs at the end of 2025.

The tech-heavy Nasdaq Composite dipped 0.4 percent to end lower for the first time in four sessions while the Dow climbed 0.6 percent and the S&P 500 finished marginally higher.

European stocks also ended mixed on Thursday despite managing to find some support in the closing hour.

The pan European Stoxx 600 slipped 0.2 percent. While the U.K.'s FTSE 100 finished marginally lower, the German DAX inched up marginally and France's CAC 40 added 0.1 percent.