European Markets Mixed Ahead of US Inflation Data and Eurozone Forecasts
By At 03:35 ET (08:35 GMT), European markets were mixed as investors assessed the potential for further monetary policy tightening ahead of key U.S. inflation data and fresh quarterly Eurozone economic forecasts. The DAX index in Germany traded 0.2% higher, the CAC 40 in France climbed 0.4%, and the FTSE 100 in the U.K. rose 0.2%. The DAX in Germany increased by 0.4%, and the FTSE 100 in London rose 0.5% on the national market indexes. The CAC 40 in Paris increased by 0.5% and the IBEX 35 in Spain rose by[0]
In commodities, U.S. crude futures fell 2.1% to $76.73 a barrel, while the Brent contract dropped 1.9% to $83.49.[1] A weekly decrease of over 2% was predicted for both benchmarks.[2] Gold futures traded 0.3% higher at $1,870.35/oz, while EUR/USD traded 0.1% higher at 1.0750.[3]
After the invasion of Ukraine by Russia, energy prices increased and Centrica (LON:CNA) saw their full-year profits triple. This news caused their stock to rise by 4%.[4]
On Thursday, oil prices increased due to a rise in confidence in the revival of Chinese demand, despite a great expansion in U.S. crude stockpiles.[5] Brent Crude Futures for April settlement increased 0.70 percent to $85.98 whereas WTI Crude Futures for March settlement increased 0.92 percent to $79.31.
The German 10-year Bund yield climbed by 7.5 basis points to 2.556% from 2.482%, and the yield on the 10-year U.S. Treasury rose by 4.2 basis points to 3.904% from 3.862%.[6] When bond prices go up, yields go down, and vice versa.[1]
It is predicted that the yearly figure will demonstrate a further decrease in inflation in January, yet still remain comparatively high, potentially prompting further interest rate increases by the Federal Reserve.[7] “It's certainly possible that inflation will be stuck above 4% as the year ends,” said Barings.[8] “The Fed may not need to raise rates much more than currently expected, but it may not be able to cut until well into next year.[8]
0. “European stocks edge higher; U.K. jobs data helps ahead of U.S. CPI” Yahoo! Voices, 14 Feb. 2023, https://www.yahoo.com/now/european-stocks-edge-higher-u-040042094.html
1. “US Futures, European Stocks Slip Amid Fading Rate-Cut Hopes” MarketWatch, 17 Feb. 2023, https://www.marketwatch.com/story/us-futures-european-stocks-slip-amid-fading-rate-cut-hopes-cd6cb275
2. “European stocks slump; hawkish central bank talk weighs By Investing.com” Investing.com UK, 17 Feb. 2023, https://uk.investing.com/news/stock-market-news/european-stocks-slump-hawkish-central-bank-talk-weighs-2918213
3. “Inflation Angst Seen Dragging European Benchmarks” RTTNews, 15 Feb. 2023, https://www.rttnews.com/3344093/inflation-angst-seen-dragging-european-benchmarks.aspx
4. “Europe close: Stocks gain despite ‘hot' US inflation data” ShareCast, 16 Feb. 2023, https://www.sharecast.com/news/market-report-europe-close/europe-close-stocks-gain-despite-hot-us-inflation-data–12371710.html
5. “European Benchmarks Seen Opening Strong” RTTNews, 16 Feb. 2023, https://www.rttnews.com/3344444/european-benchmarks-seen-opening-strong.aspx
6. “European equities stumble following Wall Street's league” Seeking Alpha, 17 Feb. 2023, https://seekingalpha.com/news/3937557-european-equities-stumble-following-wall-streets-league
7. “European stocks edge higher; U.S. inflation data in focus By Investing.com” Investing.com, 13 Feb. 2023, https://www.investing.com/news/stock-market-news/european-stocks-edge-higher-us-inflation-data-in-focus-3001493
8. “EMEA Morning Briefing : Shares Could Slip Into Red on Fading Hopes of Rate Cuts” Marketscreener.com, 17 Feb. 2023, https://www.marketscreener.com/news/latest/EMEA-Morning-Briefing-Shares-Could-Slip-Into-Red-on-Fading-Hopes-of-Rate-Cuts–43013531/
