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EUROPE BEFORE THE BELL: NOT ANOTHER AI-INDUCED SELLOFF

How the market reacts to L'Oreal earnings and whether the latest software selloff continues are the two questions ahead of the European open before the focus starts shifting to U.S. inflation data.

As of now, the answers seem to be "not well" and "not really", but these aren't the markets for saying anything with too much confidence.

L'Oreal's OREP.PA reported after Thursday's close that fourth-quarter sales grew 6%, but the lack of any growth in North Asia could get traders nervous. Premarket indications are calling the stock sharply lower.

Meanwhile, on Wall Street, the technology-heavy Nasdaq Composite .IXIC tumbled 2% on Thursday after Cisco Systems CSCO.O posted quarterly adjusted gross margin below estimates as costs of memory chips surged.

There were also AI disruption worries, this time hitting logistics stocks. Kuehne und NagelKNIN.S and DSV DSV.CO caught that just before the European close each falling 10%.

There have been a bunch more earnings too.

British lender NatWest NWG.L said its annual profit rose 24% on Friday, slightly ahead of forecasts, and French IT services group Capgemini CAPP.PA posted above target revenues.

U.S. inflation data is due 0830 ET (1330 GMT) so that will shape the macro picture.

(Alun John)

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