European stocks are expected to open higher on Friday as U.S. inflation and weak labor market data increase bets for Federal Reserve interest-rate cuts. Treasury yields dropped, leading to the lowest 30-year mortgage rate in nearly a year. Traders predict 125 bps of rate cuts over the next five FOMC meetings to support a deteriorating job market. The euro is below 1.1750 against the dollar, awaiting German final inflation figures. Asian markets rose, while U.S. stocks closed at record levels. Consumer price growth accelerated to 2.9 percent in August, matching expectations.

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