European Factors to Watch-Rebound seen petering out, data eyed
LONDON Jan 9 (Reuters) - Markets were seen opening on a subdued note in Europe on Friday after a fall in German industrial output and ahead of U.S. non-farm payrolls data, following strong gains in the previous session driven by hopes that central banks would stick to their accommodative post-crisis stance.
At 0729 GMT, EuroStoxx 50 futures were trading down 0.8 percent, German DAX futures were down 0.4 percent and French CAC 40 futures were down 0.5 percent.
The euro continued to flirt with fresh nine-year lows against the dollar.
Figures out of Germany showed industrial output from Europe's No. 1 economy in November fell 0.1 percent month-on-month, compared with a Reuters consensus forecast gain of 0.4 percent. Exports also fell sharply.
A strong U.S. non-farm reading would strengthen prospects of the U.S. Federal Reserve hiking rates later this year and again highlight the contrast in policies between the ECB, now facing euro zone deflation and seen on the brink of adopting quantitative easing.
"An extremely positive number could cause some ripples particularly given the timing of a Fed rate hike, as it would suggest that any slack in the US labour market could disappear faster than anticipated," said Michael Hewson, CMC Markets analyst.
In China, data on Friday showed inflation in the world's second largest economy hovered close to a five-year low, giving policymakers more room to ease policy and support growth.
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