Focus will be squared on thecore PCE price index, the Fed's preferred inflation gauge. Concerns about the possibility of a more hawkish Fed increased as it picked up speed in January.

Chinese PMI data will be eagerly monitored on Friday, as market observers attempt to assess the strength of the recovery in the world's second largest economy following the relaxation of pandemic restrictions.

Inflation data in The Eurozone on Friday that will be keenly monitored, while headline inflation is predicted to fall, the underlying rate of inflation, which excludes volatile components like food and fuel prices, is predicted to grow.

Investors are preparing for more unrest in the banking industry following the failure of two American lenders earlier this month and the forced takeover of troubled Credit Suisse by rival UBS last weekend, which resulted in the writedown of some of its contingent convertible bonds.