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

Gregor Stuart Hunter:

Japan's Sanae Takaichi, on track to be prime minister and the

first female holder of the job, has set pulses racing in Tokyo

lately but today she is encountering pushback on her earlier

tough talk towards the central bank from the campaign trail.

An avowed fiscal dove who last year called the Bank of Japan

"stupid" for raising interest rates, Takaichi has reined in her

previous criticism of the central bank - but is still urging the

BOJ to "align" with the government's goal.

One reason for her watered-down criticism may be the ongoing

talks with the ruling Liberal Democratic Party's junior

coalition partner Komeito. Another factor is the yen.

Finance Minister Katsunobu Kato today voiced concern about

"one-sided, rapid moves in the foreign exchange market" that

have pushed the currency 3.5% weaker since Takaichi's election

this weekend to 153 against the dollar, representing the yen's

weakest level in eight months. Market fantasies of a second

volley of Abenomics could meet with a reality check.

Someone else who might prefer fewer headaches from the prime

minister's office today is Emmanuel Macron, who is seeking to

appoint his sixth in two years. In early European trades,

pan-region futures were little changed.

U.S. equity futures stabilised after declines for

the S&P 500 on Thursday, rising 0.1%, while the U.S. dollar

index edged down 0.1%, retracing gains after the political

worries in Japan and France pushed the greenback to a two-month

high.

Asian stocks limped towards the end of the

week on Friday, down 0.4%, as the sense of exhaustion on Wall

Street lingered into early trading in the region, while

commodity markets took a breather after their recent charge

higher.

Chinese stocks tumbled after Beijing expanded its

rare earths export controls on Thursday, tightening restrictions

over the sector ahead of talks between Presidents Trump and Xi

Jinping.

Gold slipped, extending declines after snapping a four-day

winning streak on Thursday, shortly after breaching the $4,000

mark for the first time. Spot gold was last trading down

0.3% at $3,964.50 per ounce.

In energy markets, Brent crude slipped 0.4% to

$64.95 per barrel, after Israel's government ratified a

ceasefire with the Palestinian militant group Hamas on Friday,

clearing the way to suspend hostilities in Gaza within 24 hours

and free Israeli hostages held there shortly after that.

Meanwhile, the Nobel Peace Prize is due to be awarded at

0900 GMT. Polymarket favours Venezuelan opposition leader María

Corina Machado, with a 70% probability. Donald Trump is on 3%.

Key developments that could influence markets on Friday:

Debt auctions:

UK: 1-month, 3-month and 6-month government debt auctions