European Shares Poised To Open On Mixed Note
(RTTNews) - European stocks may open on a mixed note Friday as investors react to comments from Federal Reserve officials and await more U.S. economic data for directional cues.
San Francisco Fed president Mary Daly on Thursday said she expects further easing in both price pressures and the labor market, and therefore some policy adjustment will be warranted.
Chicago Fed President Austan Goolsbee described the latest inflation data as "excellent," adding the reports prove that the central bank is on track to meet its 2 percent target.
St. Louis Fed President Alberto Musalem also said cooler inflation data is "encouraging" and the current level of the federal funds rate is "the appropriate posture for policy at the current juncture".
Trading later in the day may be impacted by data on U.S. producer price inflation along with a report on consumer sentiment, which includes readings on inflation expectations.
Focus also shifts to the earnings season, with reports from financial giants JPMorgan Chase, Wells Fargo and Citigroup awaited.
Asian markets traded mixed as technology stocks fell and a surge in the yen triggered speculation that Japanese authorities may have again intervened in forex markets to prop up the ailing currency.
Data released earlier today showed that China's exports grew at the fastest pace in more than a year last month, while imports dropped unexpectedly in another sign of weak domestic demand.
Final inflation reports from France and Spain as well as German wholesale price data for June are due later in the day.
The dollar index edged up slightly as most national surveys taken after their consequential June 27 debate showed former President Donald Trump leading President Joe Biden in presidential race.
Gold dipped in Asian trade, after having surged above the $2,400 per ounce mark on Thursday to reach its highest level since May 22.
Oil extended gains on signs of improved summer demand and optimism over U.S. interest-rate cuts.
U.S. stocks declined overnight even as data showed consumer prices surprisingly fell in June from the previous month, bolstering hopes for two Federal Reserve rate cuts this year.
Treasury yields dropped as data showed the CPI declined 0.1 percent from May, the weakest monthly reading since May 2020 and putting the 12-month rate at 3 percent, down from 3.3 percent in May.
The annual rate of core consumer price growth also slowed to 3.3 percent from 3.4 percent.
The tech-heavy Nasdaq Composite plunged 2 percent and the S&P 500 shed 0.9 percent after reaching new record intraday highs in early trading. The narrower Dow ended little changed with a positive bias.
European stocks rose for a second straight session on Thursday after the release of encouraging German inflation, U.K. GDP and U.S. CPI data.
The pan European STOXX 600 advanced 0.6 percent. The German DAX and France's CAC 40 both added around 0.7 percent while the U.K.'s FTSE 100 gained 0.4 percent.