European stock markets are poised for a mixed opening on Friday following a week of earnings, economic data, and monetary policy announcements. The news that the Eurozone economy stagnated in the fourth quarter has fueled expectations for further interest rate cuts by the European Central Bank. Meanwhile, the recent DeepSeek fallout, driven by the race to invest in artificial intelligence assets, continues to impact the market. Bank of America suggests that funds heavily invested in AI stocks last year are experiencing the most significant negative reactions. Additionally, the US dollar strengthened against other currencies after President Trump announced a 25% tariff on imports from Mexico and Canada.
European stock markets are heading for a mixed open Friday, after a slew of earnings, data and monetary policy decisions saw the benchmarkshowing the bloc stagnated in the fourth quarter of 2024, reinforced market bets that the central bank will cut three more times to reach 2% by the end of the year.Chinese artificial intelligence firm DeepSeekGold futures on the New York Mercantile exchange were trading at $2,852.5 per ounce.
Yates expects that the slower-than-expected GDP data could lead the Fed to be"increasingly dovish, letting inflation run hotter for longer and therefore pushing real rates lower."
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