Stock markets are anticipated to begin neutral on Friday, with an economic data dump expected to provide fresh insight into the magnitude of the continental slump.

European stock markets are anticipated to begin neutral on Friday, with an economic data dump expected to provide fresh insight into the magnitude of the continental slump.

The month-long risk-asset rally following the financial system's stabilisation appears to be winding down, as economic data indicate a worldwide economic slowdown.

In the United States, ongoing unemployment benefit claims increased to their highest level since November 2021, indicating a deteriorating labour market.

Over in Europe, British retail sales declined 0.9% month on month in March, a 3.1% year-on-year dip, as consumers battled with discretionary spending in the face of low inflation.

Later on in the afternoon, manufacturing surveys from the United Kingdom and the eurozone are likely to reveal that the sector remains in recession.

Services in Europe and the United Kingdom PMIs are expected to remain in expansionary territory, but this might exacerbate inflationary pressures, forcing both the ECB and the BoE to raise interest rates next month.

Furthermore, the banking sector will be scrutinised following the Financial Times' revelation that Credit Suisse investors launched a lawsuit against Switzerland's banking regulator following the purchase by Swiss firm UBS.

Oil prices slipped lower Friday, on track for a substantial weekly loss due to growing worries that the United States economy, the world's largest consumer of petroleum, could enter a recession as the year unfolds.

Crude oil stocks in the United States declined more than expected last week, according to Energy Information Administration statistics released earlier this week, while petrol inventories increased unexpectedly due to weak demand.

(investing.com, reuters.com)