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

Westbrook

Friday's session brought a cautious mood to the markets,

ahead of a smattering of data and an uncomfortable weekend.

China's finance minister has called a fiscal policy briefing

for Saturday against a backdrop of high expectations and jittery

trade. Investors and, as of Thursday, Swedish furniture shop

IKEA want fiscal stimulus to reinvigorate the economy.

Markets are expecting Beijing to announce 2 trillion to 3

trillion yuan ($280-$420 billion) in new spending, and worries

about whether it will deliver - after a similar disappointment

from policymakers' briefing early this week - had Chinese

equities falling on Friday.

On the geopolitical front, Israel is mulling its response to

an Iranian missile attack, and a retaliatory strike on oil or

military targets would likely draw a sharp reaction in financial

markets.

Investors in Asia were taking chips off the table.

Chinese stocks are set for a weekly drop as follow-up

details on promises to support the economy have so far

underwhelmed.

Hong Kong markets were closed for a holiday on Friday,

leaving the Hang Seng nursing its largest weekly drop in two

years as investors hit pause on one of its sharpest ever

rallies. Gold was creeping higher.

British monthly GDP data is due in the European session and,

while it is hard to really gauge growth from monthly figures,

signs of strength in the services sector may have investors

dialling back expectations for interest rate cuts.

Markets price about a 3/4 chance of a 25 basis point rate

cut in November, while opinions at the Bank of England itself

are also divided.

Rate cuts should come gradually, BoE chief economist Huw

Pill told the Institute of Chartered Accountants in England and

Wales last week, a day after Governor Andrew Bailey was quoted

in the Guardian saying the central bank could move aggressively.

Among U.S. earnings, J.P. Morgan, BNY and

Wells Fargo ( WFC ) are due before the open. Tesla shares may

react to the long-awaited showcase of an autonomous taxi in Los

Angeles, which came with fanfare but few details on timing.

Production is not set to begin until 2026.

U.S. producer prices data is also due and will frame

expectations for the Federal Reserve's preferred PCE measure out

later in the month. Slightly stronger-than-expected inflation in

September has, for now, knocked out market expectations of

anything more than a 25 bp interest rate cut at the Fed's

November meeting.

Key developments that could influence markets on Friday:

- British monthly GDP

- U.S. PPI

- J.P. Morgan, Wells Fargo ( WFC ) earnings