European stocks are seen opening higher on Friday as benchmark U.S. 10-year Treasury yields dropped to a three-month low amid expectations that a spike in U.S. inflation will not push the Federal Reserve to change its dovish stance.

Asian markets were broadly higher, though the upside remained capped as the G7 summit gets underway in Cornwall. It is expected that leaders of the G7 economies will pledge to provide 1bn coronavirus doses to poorer countries.

A weaker dollar and U.S. bond yields helped gold hover near the key $1,900 per ounce level, while oil struggled to hold above $70 a barrel.

Monthly GDP, industrial production and foreign trade figures are due from the U.K. later in the session, headlining a light day for the European economic news.

Across the Atlantic, trading may be impacted by reaction to the University of Michigan’s preliminary report on consumer sentiment in the month of June.

U.S. stocks rose overnight as investors digested separate data showing another leap in consumer prices and a fall in unemployment benefits for the sixth straight week.

The Labor Department said its consumer price inflation rose an annual 5 percent in May, marking the highest annual inflation rate in nearly 13 years.

The Dow inched up 0.1 percent and the tech-heavy Nasdaq Composite gained 0.8 percent while the S&P 500 added half a percent to reach a new record closing high.

European stocks ended mixed on Thursday as the European Central Bank maintained an elevated flow of stimulus, as widely expected, and raised its growth and inflation projections.

The pan European Stoxx 600 ended flat with a positive bias. The German DAX slipped 0.1 percent and France’s CAC 40 index dipped 0.3 percent while the U.K.’s FTSE 100 inched up 0.1 percent.

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