European Shares Seen Mostly Lower Before US Inflation Data

(RTTNews) - European stocks may open broadly lower on Friday as the prospect of a peace agreement between Russia and Ukraine waned and focus shifted to a key U.S. inflation reading due later in the day that could provide additional clues on the Federal Reserve's rate outlook.

After Russian missiles and drones ripped through apartment blocks in the Ukrainian capital Kyiv on Thursday, killing at least 23 people, including four children, U.S. President Donald Trump said he "was not happy about this news, but he was also not surprised" about the attack.

On the trade front, the European Union said it has adopted draft regulations to remove all tariffs on U.S. industrial goods and give preferential treatment to some U.S. agricultural and seafood products.

In economic releases, the U.S. PCE inflation and spending data will be in the spotlight today along with other reports on Chicago-area business activity and consumer sentiment.

Fed Governor Christopher Waller has called for a rate cut at the upcoming meeting in September, adding he "fully expects" more rates cuts to follow to bring the Fed's policy rate closer to a neutral setting.

The dollar was set for a monthly fall of 2 percent against a basket of currencies due to Fed independence worries and heightened expectations of imminent Fed rate cuts.

Federal Reserve governor Lisa Cook has sued President Trump over his attempt to fire her, setting up a potential legal battle with implications for the U.S. central bank's autonomy.

Gold ticked lower in Asian trading but was poised for a weekly gain on rising rate-cut hopes. Oil dipped after gaining in the previous session.

U.S. stocks rose overnight as traders reacted to highly anticipated earnings news from AI darling Nvidia and data showing a surprise rise in the second-quarter gross-domestic product estimate.

Real GDP shot up by 3.3 percent in the second quarter compared to the previously reported 3.0 percent surge, primarily reflecting upward revisions to investment and consumer spending.

Separate data showed U.S. jobless claims fell to 229000 last week, signaling low layoffs.

The S&P 500 added 0.3 percent to reach another new record closing high while the Dow edged up 0.2 percent and the tech-heavy Nasdaq Composite gained half a percent.

European stocks ended mixed on Thursday as Nvidia flagged persistent uncertainty over Chinese sales.

The pan European STOXX 600 slipped 0.2 percent. The German DAX finished marginally lower and the U.K.'s FTSE 100 shed 0.4 percent.

France's CAC 40 edged up by 0.2 percent after hefty losses earlier in the week on concerns over a deepening political and fiscal crisis.