European markets were slightly lower at the end of a muted trading week and ahead of key monetary policy meetings.
The pan-European Stoxx 600 index provisionally closed down 0.2%, with sectors spread across gains and losses. Utilities saw a 0.7% uptick, while chemicals dropped 2%.
Investors appeared cautious ahead of interest rate decisions to come next week from the U.S. Federal Reserve — where markets are pricing in around a 72% chance of a pause, according to CME's FedWatch tool — and the European Central Bank, where many analysts expect another 25 basis point hike despite the freshly-declared euro zone recession.
We’re expecting Asia to outperform the West, Morgan Stanley says
Bruna Skarica, U.K. economist at Morgan Stanley, discusses the outlook for global markets.
HSBC pulls some UK mortgage deals
The U.K.'s biggest bank, HSBC, temporarily withdrew mortgage deals via broker services on Thursday, as the effect of higher interest rates ripples through the British housing market.
HSBC told CNBC Friday that it was reviewing the situation regularly, but did not specify whether the new deals would differ from its previous offerings.
— Hannah Ward-Glenton
ECB likely to opt for June hike despite euro zone recession, ING says
The European Central Bank looks set to raise interest rates by another 25 basis points at its June 15 meeting despite figures this week showing the euro zone entered a recession, according to Dutch bank ING.
"Macro developments since the May meeting have clearly had more to offer the doves than the hawks at the ECB," said Carsten Brzeski, ING's global head of macro. Brzeski cited the weak economic data and fall in core and headline inflation.
"However, the ECB is fully determined right now to err on the side of higher rates," he continued. "Despite the recent decreases, actual headline and core inflation and expectations for inflation only to return to target in two years from now are clear arguments for the ECB to not only continue hiking by 25bp next week but to also keep the door open for rate hikes beyond then."
— Jenni Reid
Stocks tick higher Friday
Markets are in the eye of the storm right now: Edison Group
Neil Shah, director of content and strategy at Edison Group, says "this unusual period of low volatility is not a window of what is to come" and weighs in on the outlook for stocks.
European markets: Here are the opening calls
European markets are expected to open marginally higher Friday. The FTSE will reach 7,606 with an 8-point uptick, according to IG data, while Germany's DAX will gain 1 point to 15,995. France's CAC will be up 2 points to 7,226, while Italy's MIB will move 7 points up to 27,274.
— Hannah Ward-Glenton
CNBC Pro: UBS strategist: There’s too much risk in Big Tech right now — here's where to invest instead
Big Tech valuations have been driven higher by excitement over A.I, but a UBS strategist believes there's another sector that can now offer similar returns with less risk.
— Ganesh Rao
S&P 500 is on pace for a four-week winning streak
The S&P 500 is headed for a fourth straight week of gains for the first time since last August. As of Thursday's close, the broader index was higher by nearly 0.3%.
Meanwhile, the Dow Jones Industrial Average is on pace for a second consecutive week of gains, or its best streak since its four straight weeks of gains ending in April. The benchmark is higher by 0.2%.
On the other hand, the Nasdaq Composite is on pace to break a six-week winning streak. The tech-heavy index is just slightly down for the week, by 0.02%.
— Sarah Min, Chris Hayes
CNBC Pro: Forget Nvidia: Fund manager says buy these two chip giants instead, giving one 30% upside
At the center of the recent AI excitement lies Nvidia.
But one fund manager told CNBC Pro he would not buy Nvidia right now. He explains why and says he would invest in two other chip giants instead.
He calls one "very cheap" and "a great story at a great valuation," and the other a "keystone in all technology," giving one of them 30% potential upside.
— Weizhen Tan