Peter Nurse

Investing.com: European stock markets will open muted Friday. This is to end a positive week and be cautious ahead of U.S. Inflation data.

The contract in Germany was trading 0.1% lower at 2AM ET (0600 GMT), while the French contract traded flat. Meanwhile, the U.K contract fell 0.4%.

Europe’s equity markets will post a positive week. The,. and. are all about 2% higher. Investors sought bargains following a series losses. However, they also felt some comfort knowing that the central banks could reduce its tightening efforts if inflation signs indicate an upward trend.

With the PCE’s last year showing an impressive 6.6% rise, this brings us closer to Friday’s release of the.

This positive sentiment is fragile in Europe, as European Central Bank President points to tightening monetary policy in July despite the fact that the war in Ukraine may slow economic growth.

Additionally, industrial profits in China, one of Europe’s main export markets, fell 8.5% in April from a year ago, shrinking for the first time in two years as COVID outbreaks and lockdowns disrupted economic activity.

In corporate news, the U.K. oil and gas industry is likely to be in focus Friday after the country’s government announced on Thursday that it will impose a 25% windfall tax on these companies to support Britons facing a record squeeze on living standards.

BP (NYSE -) stated that it will review its investment plans. It raised the possibility that previously disclosed plans to invest 18 Billion Pounds ($23Billion) in Britain could be reversed.

Friday’s stabilization of oil prices was due to the support from expected demand growth during the US summer driving season.

Also propping up the market is the continued expectation that the European Commission will eventually obtain unanimous support of all 27 bloc member states for its proposed new sanctions against Russia, despite Hungary’s opposition to-date.

Futures closed 0.1% below $114.00 per barrel at 2 AM ET after having gained 3.4% the previous session. Contracts traded flat at $114.18 on Thursday, following a 2.7% gain.

Furthermore, it rose 0.2% to $1851.80/oz and traded 0.2% higher at 1.0775.