European stocks are set to rebound on Friday following a negative close on the back of a call from the International Monetary Fund (IMF) warning that the euro zone economy faces rising risks from trade tensions, Brexit and Italy.
European Markets: FTSE, GDAXI, FCHI, IBEX
In a report published Thursday afternoon, the IMF urged fresh stimulus from the European Central Bank (ECB) to mitigate rising economic dangers, causing stocks to slide into the red.
Asian shares edged cautiously higher Friday ahead of the release of Chinese trade data for June, as investors look to gauge the impact of Beijing’s ongoing trade war with Washington.
Investors are also processing mixed messages from the U.S. Federal Reserve after Chairman Jerome Powell kept the focus Thursday on global risks which could trigger a rate cut this month, while colleagues from regional Fed districts painted a rosier picture of continued U.S. growth and a solid business outlook.
Back in Europe, the French Senate gave final approval on Thursday to a tax on big tech companies, evoking ire in Washington and potentially opening the door to a fresh trade row, with the White House alleging it to be an “unfair” tax on U.S. companies.
In corporate news, Chinese tourism group Fosun said on Friday that it is in advanced talks with Thomas Cook Group’s lending banks to inject £750 million ($940 million) into the London-listed travel operator.
Italian infrastructure group Atlantia said it would explore the purchase of a stake in ailing national airline Alitalia, though it is unlikely to be ready ahead of the government’s deadline of Monday.