European markets set for higher open on U.S. inflation reading, China’s easing of Covid measures

Elliot Smith

European stocks advanced on Friday as global markets remained buoyant after softer-than-expected U.S. consumer price index reading signaled that inflation may have peaked.

European markets

TICKER	COMPANY	PRICE	CHANGE	%CHANGE
.FTSE	FTSE 100	7403.16	27.82	0.38
.GDAXI	DAX	14205.35	59.26	0.42
.FCHI	CAC 40 Index	6622.13	65.3	1
.FTMIB	FTSE MIB	24568.96	174.68	0.72
.IBEX	IBEX 35 Idx	8154	20.8	0.26

The pan-European Stoxx 600 was up 0.4% in early trade, with mining stocks adding 2.6% to lead gains while the health care sector slipped 0.5%.

The European blue chip index closed 2.8% higher following Thursday’s consumer price index print, which sent major averages stateside to their biggest one-day rallies since 2020.

Markets are hoping the data could encourage the U.S. Federal Reserve to ease its aggressive monetary policy tightening.

U.S. stock futures rose early on Friday, pointing to further gains on Wall Street, with investors also keeping an eye on outstanding results from the U.S. midterm elections.

Investor optimism was boosted on Friday after China said it would ease some Covid measures, which sent Hong Kong’s Hang Seng index soaring more than 7% overnight.

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Britain’s FTSE 100 is seen around 48 points higher at 7,423, Germany’s DAX is set to climb by around 107 points to 14,253 and France’s CAC 40 is expected to gain around 67 points higher at 6,624.

Source : CNBC