European stock markets are anticipated to open higher on signals that the region's economy is steadily rebounding.

Before the announcement of the Federal Reserve's preferred inflation gauge on Friday, European stock markets are anticipated to open higher on signals that the region's economy is steadily rebounding.

According to information provided earlier in the day, the GfK consumer confidence index increased seven points to minus 38 in February, indicating a recovery in U.K. consumer confidence. Even though it was a 10-month high, this is still very near to the historic lows brought on by the cost of living issue.

The German GfK consumer climate index for the coming month increased from -33.8 to -30.5 in March.

Less positive growth numbers came from Germany, where the largest economy in the Eurozone had a 0.4% decline in the fourth quarter of 2017 and only 0.3% annual growth.

These figures, however, are historical, and estimates of corporate activity for 2023 have been considerably more upbeat.

Later in the session, when the core personal consumption expenditures price index for January, the inflation indicator that the U.S. central bank pays the most attention to, is released, it may become clear to what extent those difficulties are affecting the world's largest economy.

The index is projected to rise 4.3% from a year ago, down from 4.4% in the previous month, indicating that inflation will be difficult to control.

The largest chemical company in Europe, BASF, revealed intentions to shed 2,600 jobs or around 2% of its worldwide workforce, as it adjusts to life without cheap Russian gas.

Oil prices went up on Friday as growing U.S. stocks were countered by the possibility of less supply coming from Russia into the global market.

According to a Reuters story, Moscow intends to reduce oil shipments from its western ports by up to 25% in March, which is more than the 500,000 barrel supply decrease already stated.

The disclosure of another increase in U.S. oil stocks has been overshadowed by this information, despite statistics from the Energy Information Administration indicating inventories rose for a ninth straight week to their highest level since May 2021.

Key Events:

• US Core PCE Price Index (Jan) at 13:30 GMT.
• US New Homes Sales (Jan) at 15:00 GMT.

(Investing.com, Reuters.com)