European Markets set to open Higher before the NFP

European financial markets are set to ring the bell on Friday on a positive note. Euro area traders are looking over the details of more monetary stimulus from the European Central Bank (ECB) and are waiting on the key non-farm payroll report later in the day.

The FTSE 100, in London, is set to open 52 points higher at 6,394 and the German DAX is set to ring the bell 145 points higher at 12,576. The French CAC 40 is set to open about fifty (50) points higher at 5,062.

Traders are digesting another 600 billion euro expansion of the Pandemic Emergency Purchase Program (PEPP). This was larger than what the markets had expected.

European Traders wait on Key U.S. Labor Data

At 8:15 am EST, the United States will release their non-farm payroll (NFP) report for the month of May. The U.S. will also release the May unemployment rate, average hourly earnings and the labor participation rate. The unemployment rate is expected to shoot up to near twenty (20) percent, if not more.

The unemployment numbers, in the United States, remain concerning. Millions are filing for first time claims. However, the weekly claims data is improving.

Canada is also publishing key labor data. They are releasing their monthly unemployment rate and unemployment change. Canada is also releasing their monthly Ivey purchasing managers’ index (PMI).

Monthly German factory orders are on the schedule today. Italy will publish monthly retail sales data.

New Stimulus out of the ECB supports Sentiment

The ECB has now expanded the Pandemic Emergency Purchase Program (PEPP) to 1.35 trillion euros. ECB President Christine Lagarde says that the central bank will help the euro area economy ward off an “unprecedented contraction.”

As noted above, the ECB announced that they will increase their Emergency Purchase Program by 600 billion euros.

Financial market participants will be watching other key central banks closely over the coming days as economies start to reopen.