European equity markets were set to open higher on Friday, extending their advance to fresh record highs after weaker-than-expected US jobs data lowered expectations for a near-term Federal Reserve interest rate hike.
In Europe, investors also see roughly a one-third chance of a European Central Bank rate increase in July as easing inflation suggests the eurozone is moving closer to price stability.
Attention now turns to the latest PMI readings from across the region for further clues on the strength of economic activity.
Sentiment was supported further after Germany’s ruling coalition reached an agreement on Thursday over broad tax, labor, and pension reforms. In premarket trading, Euro Stoxx 50 futures rose 0.5%, while Stoxx 600 futures gained 0.3%.