European stock futures higher ahead of economic data

The DAX futures contract in Germany traded 0.6% higher, CAC 40 futures in France climbed 0.3%, and the FTSE 100 futures contract in the U.K. rose 0.3%

European stock markets are expected to open higher Friday in thin holiday-affected volumes ahead of the release of more regional growth, inflation, and confidence data.

At 07:00 GMT, the DAX futures contract in Germany traded 0.6% higher, CAC 40 futures in France climbed 0.3%, and the FTSE 100 futures contract in the U.K. rose 0.3%.

Economic data released this week has helped the European markets approach the close of the year with a degree of optimism that the recession expected for the region in 2023 may not be as bad as first feared.

There are more numbers to digest on Friday - a day that sees the U.K. stock market close early ahead of the Christmas holiday - with Spanish third-quarter GDP, French November PPI, and Italian December consumer confidence data all due for release this session.

That said, the bulk of attention will be on the U.S. economic data calendar, with personal consumption expenditures data, the Federal Reserve’s inflation gauge due later on Friday, which will provide more clues on the direction of prices as 2023 draws near.

Oil prices rose Friday on expectations that Russian supply will be reduced in the new year, while traders digest the impact of the winter storm hitting the U.S.

Russia will halt sales of its oil to the countries which support the price caps introduced by the G7 countries earlier this month, which may cut oil output by 5%-7% in early 2023, the RIA news agency cited Deputy Prime Minister Alexander Novak as saying on Friday.

This would tighten global supply even further, likely boosting prices as demand increases, particularly from China as it recovers from its latest COVID outbreak.