(RTTNews.com) – European stocks are likely to open higher on Friday after the U.S. Senate adopted a fiscal 2018 budget resolution Thursday, a step forward towards overhauling the U.S. tax code.
The dollar weakened against its rivals amid political tensions in Spain as a deadline set by Madrid for a final decision on independence approaches.
Traders also remain anxious to hear who President Donald Trump will pick as next Fed chief, with media reports suggesting that he is leaning toward nominating Federal Reserve governor Jerome Powell to succeed Janet Yellen.
Investors also await Sunday’s Japanese general election, with recent polls suggesting that Prime Minister Shinzo Abe’s coalition is on track for a roughly two-thirds majority.
Elsewhere in New Zealand, the nationalist New Zealand First Party has agreed to form a new government with centre-left Labour Party.
Gold drifted lower while crude oil prices edged higher in Asian deals after losing more than 1 percent on Thursday to snap a four-day winning streak.
The day’s economic calendar remains light, with public sector finance figures from the U.K. and current account data from the euro area slated to be released later in the session.
U.S. stocks ended mixed overnight, with concerns over rising corporate debt in China, global political uncertainty and mixed earnings news weighing on markets.
The Dow and the S&P 500 rose marginally to reach fresh record closing highs after the release of encouraging jobless claims and regional manufacturing data.
The tech-heavy Nasdaq Composite dropped 0.3 percent on signs of weak demand for Apple’s iPhone 8 models.
European markets ended Thursday’s session firmly in the red as earnings proved to be a mixed bag and Spain said it would start suspending Catalonia’s autonomy from Saturday.
The pan-European Stoxx Europe 600 index declined 0.6 percent. The German DAX dropped 0.4 percent, while the U.K.’s FTSE 100 and France’s CAC 40 index both slid around 0.3 percent.
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