- July 12, 2024
- By: Admin1_blog
- EU Market, Indices
Jenni Reid
KEY POINTS
- European stocks opened higher Friday, defying a broader selloff as global investors await the U.S. producer price index.
- Telecom stocks rose 0.95% led by Ericsson, which jumped 8% after reporting a smaller revenue decline than analysts expected.
- Technology stocks took their cues from Wall Street, retreating 0.3% after a choppy session in which investors rotated out of the “Magnificent Seven” into the rest of the market.
LONDON — European stocks opened higher Friday, defying a broader selloff, with fresh inflation data set to land.
The regional Stoxx 600 index was up 0.3% at 8:10 a.m. in London even as the MSCI World Index of global stocks dipped. Telecom stocks rose 0.95% led by Ericsson, which jumped 8% after reporting a smaller revenue decline than analysts expected.
However, technology stocks took their cues from Wall Street, retreating 0.3% after a choppy session in which investors rotated out of the “Magnificent Seven” into the rest of the market.
EUROPEAN MARKETS
| TICKER | COMPANY | PRICE | CHANGE | %CHANGE |
|---|---|---|---|---|
| .FTSE | FTSE 100 | 8251.78 | 28.44 | 0.35 |
| .GDAXI | DAX | 18551.02 | 16.46 | 0.09 |
| .FCHI | CAC 40 Index | 7666.29 | 39.16 | 0.51 |
| .FTMIB | FTSE MIB | 34477.34 | 159.23 | 0.46 |
| .IBEX | IBEX 35 Idx | 11184.8 | 14.8 | 0.13 |
Reaction to the historic French and U.K. elections dominated the start of the week, but attention has moved to a flurry of inflation data.
On Thursday, the U.S. consumer price index declined more than expected to 3% annually, down from 3.3% in May.
Combined with “modestly dovish” comments from Federal Reserve Chair Jerome Powell earlier in the week, the inflation print left money markets pricing in a more than 90% chance of a September interest rate cut from the world’s biggest central bank, with another before the end of the year.
The data will be followed up by the U.S. producer price index Friday, while German, French and Italian inflation readings will also be released.
Second-quarter earnings season is kicking into gear. Along with Ericsson’s results, Norwegian Air reported better-than-expected profit for the period, according to Reuters.
Stateside, several financial services giants including JPMorgan Chase, Wells Fargo and Citigroup report before the bell.
With AI-related stocks in the spotlight, here are the top analyst calls this week
14 analysts raised their price targets on this Chinese tech giant in the past 3 weeks
U.S. stock futures were near flat in the early hours after the S&P 500 suffered its worst session since April.
In Asia-Pacific, markets were mixed — with the most action stemming from Japan, where the Nikkei 225 retreated from an all-time high to fall 2.3%. The yen, which had suddenly strengthened against the dollar after the U.S. inflation data release, sparked discussion over short bets and the potential for government intervention.
Source : cnbc
