European stock futures signaled a cautious open on Friday, with EURO STOXX 50 futures down 0.1% and FTSE 100 futures up 0.06%, as traders awaited key inflation figures in the U.S. and Europe.

The focus is on the U.S. PCE Price Index for July, expected to show monthly gains of 0.3% and an annual rate of 2.9%. The release is seen as pivotal for the Federal Reserve, with markets pricing an 85% chance of a September rate cut.

In Europe, preliminary inflation data from France and Germany will provide early signals on August price trends. The ECB has kept rates steady at 2%, but policymakers remain split between concerns over weak demand and persistent services-led inflation.

Global sentiment was lifted by a Wall Street tech rally, though political uncertainty in the U.S. continues to weigh on the dollar.