European stocks open slightly higher ahead of fresh inflation data

Karen Gilchrist

European stocks opened slightly higher Friday, extending gains from the previous session as investors await fresh inflation data.

EUROPEAN MARKETS

The regional Stoxx 600 index was up 0.07% in early deals, with the majority of sectors in the green. Telecom and insurance stocks led gains, both up around 0.4%, while tech fell 0.8%.

Euro zone inflation data due later in the session will by closely watched by investors for a signal on the path for monetary policy.

Gross domestic product data is also due out of Italy Friday. No major corporate earnings are due.

Regional markets closed higher Thursday, shaking off negative sentiment from the previous two sessions as rising bond yields weighed on investor sentiment.

The European equity market gloom has been mirrored globally this week, as expectations that interest rates will be higher for longer have driven up bond yields — generally a harmful move for stocks.

U.S. stock futures ticked lower Friday as investors assessed the latest set of corporate earnings and looked ahead to a key inflation report. In Asia Pacific, markets rose on the back of fresh data from major economies across the region.

Europe stocks head for lower open

European stock markets are set to open lower on Friday, reversing gains from the previous session, according to IG data.

The U.K.’s FTSE 100 was last seen down 2 points at 8,230, Germany’s DAX 48 points lower at 18,463, and France’s CAC down 9 points at 7,967. Italy’s MIB was seen slipping 13 points to 34,486.

— Karen Gilchrist

CNBC Pro: ‘Many happy returns’: Barclays names 2 global stocks it says has over 100% upside to play right now

Investment bank Barclays is bullish on European stocks thanks in large part to “solid earnings beats and [an] uptick in EPS [earnings per share revisions]” in the first quarter.

“Overall, margins are resilient, capital returns are strong, firms are optimistic and EPS revisions have picked up. Cyclicals are seeing more upgrades, but defensives have outperformed in the recent rally,” the analysts wrote, naming two stocks with over 100% upside potential to play right now.

— Amala Balakrishner

CNBC Pro: Goldman Sachs names top global stocks to play the coming power boom in AI and other areas

The artificial intelligence boom is fueling demand for power, with many tech companies rapidly developing infrastructure as they compete for dominance.

Power needs are only set to rise in the coming years, as large language models require a lot of data center capacity.

But the need for power goes beyond data centers and other infrastructure, according to Goldman.

Against that backdrop, the bank introduced what it called its power and electricity basket of stocks, comprising 50 stocks across China, South Korea, Taiwan, India and Australia.

— Weizhen Tan

Source : cnbc