Kevin Buckland looks ahead to European and global markets
European traders looking to Asia for direction will find themselves being pulled in two directions. In Hong Kong, real estate stocks are leading the decline as the country enters the Lunar New Year holiday, while Japan's prices are on track to hit a new high for the first time in 34 years after the bubble economy.
Hong Kong investors may have been grateful for at least a half-day of trading as the Hang Seng sub-index of mainland real estate stocks plunged more than 3%.
Mainland China's stock market, already on holiday, ended the week on a high after the Chinese government appointed a new head of its securities watchdog. He is a veteran regulator with a reputation for tough action.
In Japan, the Nikkei average soared after the central bank issued more dovish signals ahead of a three-day holiday.
Bank of Japan Governor Kazuo Ueda reiterated his deputy governor's comments from the previous day that financial conditions will continue to ease even after negative short-term interest rates are lifted.
Meanwhile, the European Central Bank, which has been reluctant to cut interest rates, faces a test with the release of Germany's final inflation figures in January.
But in the end, profits are likely to drive European market trends on the final trading day of the week, with French luxury brands topping a long list of corporate reports.
Hermès is scheduled to announce its full-year results, while L'Oréal will hold a financial results conference later on Thursday.
The STOXX 600 is up just 0.28% so far this week, and although it ended flat last week, it could still end in either direction.
Britain's FTSE is no different, currently down 0.26%, the same as last week's decline.
Key developments that may impact the market on Friday:
-German CPI, HICP Final (January)
-Italian industrial production (December), Swedish industrial production (December)
(Written by Kevin Buckland; Edited by Edmund Claman)
Copyright 2024 Thomson Reuters.
