Investors digest Fed pivot, inflation and economic data – .

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Investors digest Fed pivot, inflation and economic data – .



European stocks were relatively stable on Friday morning, as global markets watch for falling commodity prices while continuing to digest a hawkish central US Federal Reserve.

The pan-European Stoxx 600 slipped 0.2% early in the session, with insurance and banking stocks falling 1.1% to lead the losses while industrials rose 0.3%.
Stocks in Asia-Pacific were also mixed on Friday as investors monitored market movements in the commodities sector after a recent drop in prices triggered by a strengthening US dollar.

International benchmark Brent crude futures slipped 0.73% to $ 72.55 a barrel, adding to Thursday’s losses. US crude futures fell 0.55% to $ 70.65 a barrel.

In the U.S., U.S. equity futures edged higher on Friday, but the Dow is still on track for a losing week in which sentiment was dominated by rising inflation expectations by the Fed and advancing its rate hike schedule. This decision sent the dollar soaring.
On the data front, UK retail sales in May fell 1.4% month-on-month, official statistics revealed on Friday, falling short of the 1.6% expansion expected by economists in a Reuters poll. The Office for National Statistics said that food stores contributed the most to the surprise drop. The pound fell to a new six-week low following the decline.
Meanwhile, the German Producer Price Index (PPI) rose 1.5% month-on-month in May, significantly beating the consensus forecast of 0.7%. On an annual basis, the PPI was 7.2% against a projection of 6.4%.

In terms of individual stock price movement, UK car dealership Inchcape climbed 4% early in the session to lead the Stoxx 600 after raising its earnings outlook for 2021. At the bottom of the index, the insurer- Dutch Aegon life fell 3.7%.

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