European stocks were up slightly on Friday and US stock futures remained unchanged as investors analyzed stronger-than-expected inflation in the US and at the European Central Bank meeting the day before.
Investors will also be watching the G7 (G7) leaders’ meeting in Cornwall, England on Friday.
Stoxx Europe Index 600 XX: SXXP,
up 0.4% on the week, up 0.3%, while the German DAX DX: DAX
passed smoothly, French CAC 40 FR: PX1
up 0.4% and the FTSE 100 UK Index: UKX
increased by 0.5%.
US Stock Futures ES00
after a positive day on Wall Street largely unchanged, with the S&P 500 SPX
posting a record result as investors rejected data showing US annual consumer prices rose 5% in May to a 13-year high.
To read: Inflation is on the rise. How high will he go? Check out the new MarketWatch tracker.
Markets were concerned that signs of rising inflation around the world would push central banks to tighten ultralight monetary policy and stimulus introduced to combat the fallout from the pandemic. But the Federal Reserve believes that price pressures are temporary and markets continue to believe so, ”said Jeffrey Halley, senior market analyst at OANDA, in a note to clients.
“The inflation data had to either plummet or print much higher than last month to move the arrow. In the end, it happened at a tie, which led to a return to the average behavioral level of the financial markets, ”said Halley. The Federal Open Market Committee will meet next week, but no policy change is expected.
Meanwhile, the European Central Bank on Thursday left interest rates unchanged and did not change the size of its asset purchase programs at its policy meeting.
To read: No ECB hysteria, but ready for a market breakout later this year
In terms of data, the UK economy grew 2.3% in April, the fastest monthly pace since July 2020, according to the Office for National Statistics.
Yields continued to fall on both sides of the Atlantic, including the German 10-year BX: TMBMKDE-10Y.
down 1 basis point to -0.268% and the yield on 10-year US Treasuries BX: TMUBMUSD10Y
down 3 basis points to 1.437%, hitting a three-year low.
Banks were the weakest sector in Europe, falling along with bond yields. Deutsche Bank DB shares
decreased by 3%, Société Générale FR: GLE
lost 1.6%, while Crédit Agricole FR: ACA
fell by 1%.
Resource stocks grew, while metal prices rose. Rio Tinto UK Miners Shares: RIO
and Glencore UK: GLEN,
however, these shares increased by 1% and 2%, respectively.
Promotions of the Swedish retail chain Hennes & Mauritz SE: HM
also rose 1%.