European Shares Seen Up On China Recovery Hopes

(RTTNews) - European stocks may open on a positive note Friday amid hopes that China could step up stimulus to maintain stable economic growth.

The country's central bank ramped up liquidity injections through medium-term policy loans in the face of challenges from a housing slump and subdued demand.

Data showed earlier today that China's industrial production rose an annual 6.6 percent in November, beating forecasts for an increase of 5.6 percent and up from 4.6 percent in October.

On the other hand, retail sales jumped an annual 10.1 percent - shy of expectations for 12.5 percent growth but up from 7.6 percent in the previous month.

Fixed asset investment rose 2.9 percent on year - unchanged from October and missing forecasts for a gain of 3.0 percent.

The unemployment rate came in at 5.0 percent, in line with expectations and unchanged from the previous month.

Asian stocks were mostly higher, with Hong Kong and Japanese markets leading regional gains on the Fed's dovish commentary and positive economic data from China.

Trading later in the day may be impacted by reaction to flash PMI prints from the Eurozone, the U.K. and the U.S.

The dollar languished near four-month lows, keeping gold prices on track for a weekly gain.

Oil extended gains after climbing around 3 percent on Thursday, thanks to a weaker dollar and a bullish forecast from the International Energy Agency (IEA) on oil demand.

U.S. stocks eked out modest gains overnight to extend the previous session's strong rally, with strong retail sales data for November and hopes of deeper rate cuts next year underpinning sentiment.

Weekly jobless claims stood at 202,000 for the week ended 9 December, lower than the estimated 220,000.

The Dow inched up 0.4 percent to reach a new record closing high while the tech-heavy Nasdaq Composite rose 0.2 percent and the S&P 500 edged up 0.3 percent to touch their best closing levels in almost two years.

European stocks closed on a firm note Thursday as investors welcomed monetary policy announcements from the Federal Reserve, the Bank of England and the European Central Bank.

While the Fed hinted at three interest rate cuts next year, the ECB pledged to stay tight as long as necessary, and the BoE pushed back against rate cut bets.

The pan European STOXX 600 climbed 0.9 percent to close at a 22-month high.

The U.K.'s FTSE 100 rallied 1.3 percent and France's CAC 40 added 0.6 percent while the German DAX finished marginally lower.