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03.07.202606:32:40UTC+00European Stocks Head for Higher Open

European equity markets were poised to open higher on Friday, extending their rally to new record levels after weaker-than-expected US employment data reduced the likelihood of an imminent Federal Reserve interest rate hike. In Europe, markets are currently pricing in roughly a one-in-three chance of a European Central Bank rate increase in July, as moderating inflation indicates the eurozone is edging closer to price stability.

Investors are now focused on the latest PMI releases from across the region for further insight into the underlying strength of economic activity. Sentiment was bolstered further after Germany’s ruling coalition reached an agreement on Thursday on a broad package of tax, labor, and pension reforms. In premarket trading, Euro Stoxx 50 futures rose 0.5%, while Stoxx 600 futures were up 0.3%.

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