European Shares Seen Flat To Higher Ahead Of Yellen Speech

(RTTNews) - European stocks are likely to open on a positive note on Friday after posting modest gains to end at their best level in five weeks in the previous session.

U.S. stocks ended narrowly mixed overnight following a two-day rally, as crude prices retreated from the $50 a barrel level and Fed Governor Jerome Powell said a rate hike may come "fairly soon" .

Oil prices dipped further in Asian deals and gold hit its lowest level in nearly eight weeks, as fairly positive data on U.S. jobless claims, pending home sales and durable goods orders boosted expectations that the Fed could raise rate as early as June. The dollar held steady after registering modest losses overnight.

Fed Chair Janet Yellen makes a speech at Harvard University later today as investors look for further clues on the rate outlook. Reports on first quarter U.S. GDP and consumer sentiment could also have a significant impact on the movement of dollar.

Closer home, market research firm GfK said its consumer confidence index in the United Kingdom rose to -1 in May from -3 in April, beating forecasts. A measure of the economic outlook increased from the weakest reading in almost three years.

Asian shares eked out modest gains, although Chinese and Hong Kong shares fell slightly after data showed profits at Chinese industrial firms more than halved from a March reading of 11.1 percent.

Japan's core consumer prices fell for the second straight month in April, keeping policymakers under pressure to delay a sales tax hike and deploy additional stimulus to achieve the central bank's ambitious 2 percent inflation target.

Meanwhile, G7 leaders promised to adopt policies to boost global growth while warning that a British vote to leave the EU next month would seriously threaten the world economy.