European markets set to open slightly higher; traders await key inflation data

European equity markets are set to open in tentatively positive territory Friday, after making marginal gains throughout the week, with investors keeping an eye on upcoming euro zone inflation data.

The pan-European Stoxx 600 index ended Thursday’s session just 0.1% higher, bolstered by robust earnings and a subsequent 17% share price uptick from H&M.

Traders will be watching out for euro zone inflation data, due to be released at 10 a.m. London time, to see if further fiscal tightening by the European Central Bank is having the desired effect. Headline inflation for May came in at 6.1% for the region.

European Central Bank President Christine Lagarde said Tuesday that inflation is still too high and it’s too early to declare victory over consumer price rises. “Inflation in the euro area is too high and is set to remain so for too long. But the nature of the inflation challenge in the euro area is changing,” Lagarde said from the Sintra central banking event in Portugal.

Elsewhere in the world, Asia-Pacific markets were mixed after China’s factory activity shrunk for a third consecutive month in June. U.S. equity futures were little changed early Friday as investors awaited the latest data on personal consumption expenditures.