European stock markets are expected to open in a mixed fashion Friday, helped by strong earnings from Apple (NASDAQ:AAPL) but with investors remaining cautious over the recent hawkish turn by the Federal Reserve as well as Russia’s intentions for Ukraine.
At 2 AM ET (0700 GMT), the DAX futures contract in Germany traded 0.5% lower, CAC 40 futures in France dropped 0.1%, while the FTSE 100 futures contract in the U.K. rose 0.2%.
Global stock markets received a boost late Thursday after Apple, the largest company in the world by market capitalization, posted record sales over the important holiday quarter, the iPhone-maker successfully navigating the supply-chain challenges which have hurt many of its peers.
That said, investors are still digesting the latest comments from the Federal Reserve after the U.S. central bank indicated on Wednesday it was likely to raise rates in March and reaffirmed plans to end its pandemic-era bond purchases that month.
Money markets are now pricing in as many as five Fed hikes in 2022 in line with the U.S. central bank’s hawkish tone, up from the three expected as recently as December.
Back in Europe, concerns remain over Russia’s plans for Ukraine after Moscow said on Thursday it was clear the United States was not willing to address its main concerns, which revolve around the possibility of Ukraine joining NATO.
Russia has massed troops near Ukraine, prompting Western fears of an invasion. Such an incursion could have severe repercussions for Europe’s energy supplies if Russia limits its natural gas output to the region in response to the expected Western sanctions.
The FTSE MIB climbed up by 2.27% to 26,619.20. In the cash markets, the DAX Germany was trading up by 2.22% to 15,459.65. CAC 40 in France rose by 2.11% to 6,981.37 while the FTSE 100 in the U.K. was up by 1.33% to 7,469.35 ,at the time of writing.