A Look at the Day Ahead in European and Global Markets

The prospects for both big fiscal spending and continued monetary easing in the world's biggest economy create a powerful combination, boosting global stocks to end on a high note after a tumultuous week.

Wall Street enters Friday at record peaks, lifting MSCI's gauge of global equities to an all-time high with a 3.3% weekly advance.

Even China, a market that might be expected to struggle under Donald Trump's proposed tariffs, is performing well. Chinese blue chips are up nearly 6% this week, with over half of that gain occurring on Thursday, likely due to expectations of significant stimulus measures from Beijing to mitigate any potential trade war impact.

However, markets have often been disappointed in recent weeks after rising on anticipated bold Chinese stimulus plans.

The Standing Committee of China's National People's Congress concludes its week-long session in the evening, with a press conference that may elevate or deflate market expectations.

Stock futures are currently pointing about 0.2% higher for Britain's FTSE and Germany's DAX, yet Europe faces challenges, especially from the threat of blanket tariffs under Trump.

The FTSE has dipped this week, particularly on Thursday after the Bank of England warned about rising inflation, which delays expected interest rate cuts.

Germany appears closer to a snap election after Chancellor Olaf Scholz's overture to opposition leader Friedrich Merz was rebuffed, with Merz calling for an immediate vote of no confidence.

Scholz’s fragile coalition fell apart on Wednesday following his dismissal of finance minister Christian Lindner amidst ongoing budget disputes, prompting one measure of debt risk to reach a record high on Thursday.

Key Developments That Could Influence Markets on Friday:

• China NPC Standing Committee readout
• Italy, Sweden industrial production (both Sep)
• Greece CPI (Oct)

(By Kevin Buckland; Editing by Edmund Klamann)