A look at the day ahead in European and global markets from Rae

Wee.

Global stocks caught some much-needed relief on Friday after

a week of heavy battering, momentarily putting aside worries

over trade wars when top U.S. Senate Democrat Chuck Schumer

signalled his party would provide the votes to avert a

government shutdown.

Traders reacted quickly to send stock futures higher: Nasdaq

futures jumped more than 1% while S&P 500 futures

climbed 0.8%, relatively big moves for Asian hours.

MSCI's broadest index of Asia-Pacific shares outside Japan

rose 1%.

Europe similarly looked set for a strong opening, with

EUROSTOXX 50 futures gaining 0.3% and DAX futures

tacking on 0.5%.

The market's touchiness towards news that had rarely

stirred much reaction in the past suggested just how jittery

investors had become.

"If you're already in a haunted house and you're already

rattled, then every little mouse will scare you," said Vishnu

Varathan, Mizuho's head of macro research for Asia ex-Japan.

In recent years markets have been largely unfazed by

headlines surrounding U.S. government shutdowns, given that

lawmakers routinely pass temporary spending bills to keep the

government operating while they finish their work.

But going into the week's end, global markets were reeling

over fears of an impending U.S. recession and an escalating

global trade war.

Traders in London will wake up to the release of UK growth

estimates for January due early in Europe's day. Expectations

are for the economy to have grown 0.1% on a monthly basis, a

slight slowdown from December's 0.4%.

It's worth noting that Britain's relatively measured

approach to U.S. trade ructions and the largely balanced trade

position between the two have benefited the pound, which was on

track for a second straight weekly gain.

Over in the U.S., the University of Michigan Surveys of

Consumers will be the key item to watch on Friday, given how

U.S. President Donald Trump's tariff salvos are rattling

businesses and consumers alike.

Meanwhile, Chinese equities have emerged as an unlikely

sanctuary for global investors seeking shelter from all the

uncertainty in the United States.

Hong Kong's Hang Seng Index is up 17% since Trump

returned to the White House in January, compared with a drop of

about 9% in the S&P 500.

Stocks in mainland China and Hong Kong surged again on

Friday, led by consumer shares, after a northern Chinese city

announced plans to boost birth rates. Investors are also

awaiting a press conference next Monday by Chinese officials

from the top planning agency and elsewhere for additional

measures to enhance domestic consumption.

Key developments that could influence markets on Friday:

- UK GDP estimate (January)

- UK industrial output (January)

- U.S. University of Michigan Surveys of Consumers (March)