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

Kevin Buckland

Yields are mercifully lower as the week draws to a close,

removing some of the angst that has weighed on equities and

allowing the beaten-down yen and euro to regain some composure

against the dollar.

But this relative calm feels like the eye of the storm as

risk events swirl on the horizon next week: mega-cap earnings

from five of the "Magnificent 7"; a highly consequential U.S.

payrolls report on Friday; and the final lap going into a likely

photo-finish U.S. presidential election on Nov. 5.

The "Trump trade" has been gathering momentum with a sharp

rise in the odds of a second Donald Trump presidency on some

betting platforms, although polls have the race neck-and-neck.

The upshot in markets thus far is a dollar on track for a

fourth week of gains and Treasury yields set for a sixth weekly

advance, on Trump's platform of more tariffs and taxes, seen as

inflationary by many in the markets.

Meanwhile, a spate of robust U.S. economic data has spurred

a rapid paring back of bets on Fed easing, which is also buoying

yields and the dollar.

Stocks are getting a little respite to finish the week but

it's far from a recovery. Optimism over Tesla's earnings was the

driver for most of Wall Street's limited overnight gains, and

the Dow actually fell. Investors are now looking ahead to

earnings from Alphabet, Amazon, Apple, Meta and Microsoft over a

three-day period from Tuesday.

Stocks in Asia are mixed, with Japan's Nikkei sliding 1%

amid a rebound in the yen and uncertainty over a general

election on Sunday that could deprive the coalition government

of its lower house majority.

The MSCI world equity index is still limping

towards a 1.2% loss for the week, set to snap a two-week winning

streak.

Pan-European STOXX 50 futures are pointing slightly

lower, with the cash STOXX 600 heading for a 1.1%

weekly decline.

For Europe, the docket of scheduled events is on the lighter

side: Germany's Ifo surveys headline the macro calendar for

Friday, while earnings are due from Sanofi, Natwest and

Mercedes-Benz, among others.

Later in Washington, the annual IMF-World Bank meetings -

where policymakers of all stripes step up to air their views -

enter the penultimate day. Japanese officials have used the

venue to issue warnings to speculators against pushing down the

yen. Bank of England Governor Andrew Bailey speaks on Saturday.

Key developments that could influence markets on Friday:

-German Ifo surveys (Oct)

-Earnings from Sanofi, Natwest and Mercedes-Benz

-IMF-World Bank meetings in Washington DC