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

Kevin Buckland

The tone in the equities markets was decidedly feeble as the

week came to an end, with Chinese markets getting very

little help from GDP figures that topped estimates to hit

Beijing's 2024 growth target bang on at 5%.

Japanese stocks are also struggling, weighed down by

the yen's strengthening beyond 155 per dollar for the first time

in almost a month as traders ramp up bets for a BOJ rate hike

next week.

An MSCI gauge of global shares is still on

course - for now - for the best week since the start of

November, but that rally is really the story of one day -

Wednesday - when U.S. bank results got earnings season going

with a bang.

Caution is likely to reign globally, with Donald Trump's

inauguration as U.S. President on Monday looming large and

potentially bringing bombshells not only in his speech but in

any immediate executive orders, which could include massive

tariffs on friends and foes alike.

The sharp retreat in bond yields - driven by a revival in

bets for a Fed rate cut by June - must be a relief for global

investors, although it seems to have offered little to no

support for stocks in the latest market moves.

The macro economy is still front and centre for both the

fixed income and foreign exchange markets, and the dollar

is on the back foot - an unfamiliar position following six

straight weeks of gains against a basket of other leading

currencies.

The beleaguered pound seems to have found its

footing this week, as has the euro, vexing bears who

thought a plunge to parity with the dollar might be imminent at

the start of the week.

On the calendar in Europe today, Britain releases retail

sales data and the final reading of euro zone consumer inflation

is due, both for December.

Bank of Spain Governor Jose Luis Escriva gives a speech on

central bank independence in Madrid.

Wall Street earnings include State Street and Citizens

Financial Group.

Monday will be a market holiday stateside for Martin Luther

King Jr. Day.

Key developments that could influence markets on Friday:

-UK retail sales (Dec)

-Euro zone HICP final (Dec)

-Bank of Spain Govenor Escriva speaks

-U.S. earnings from State Street, Citizens Financial Group