European markets set for flat open with stimulus hopes, virus spread in focus

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European markets are heading for a muted open Friday as investors monitor prospects for fiscal and monetary stimulus, along with key data from the euro zone.

have agreed to supply the World Health Organization's COVAX access scheme aimed at lower-income countries, Reuters reported Thursday citing two sources familiar with the deal.

On the data front, January's Markit flash PMI readings for the euro zone are expected at 9 a.m. London time, and could give an indication of the bloc's economic resilience as many of its major economies returned to lockdown measures over the past month. U.K. PMIs are also due at 9:30 a.m., with December's U.K. retail sales coming in Friday morning at +0.3% month on month, lower than the +1.2% expected by analysts polled by Reuters.

The European Central Bank on Thursday held interest rates steady, but said it stands ready to act in light of the new restrictions. ECB President Christine Lagarde said the pandemic "still poses serious risks" to the euro zone economy.

 

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