By Peter Nurse
Investing.com - European stock markets are expected to open in a subdued manner Friday amid uncertainty of the extent of future Federal Reserve tightening as well as the release of U.K. growth data.
Global equities have traded with a positive tone for much of this week, with the broad-based S&P 500 on Wall Street hitting three-month highs on Thursday, following data that showed the U.S. producer price index unexpectedly fell in July.
This followed Wednesday’s weaker-than-expected consumer price index , and raised expectations that would hike rates by a less aggressive 50 basis points in September instead of the 75 basis points that had been expected earlier in the week.
However, this optimism has been diluted as Fed policymakers have since come out in force to express the need to tighten monetary policy until inflation pressures fully abate.
Back in Europe, the U.K. economy contracted 0.6% in June , a sharp drop from the 0.5% growth seen in May but better than the 1.2% drop expected. The second quarter contracted 0.1%, an early indication of the prolonged recession that the Bank of England forecast last week.
In corporate news, Roche (SIX: RO ) will be in the spotlight after the Swiss drugmaker announced it has received approval from the U.S. Food and Drugs Administration for its Xofluza drug to treat influenza in children.
Oil prices fell Friday given an uncertain outlook for demand growth, but the market is still heading for its biggest weekly gain since April.
The International Energy Agency and the Organization of Petroleum Exporting Countries provided differing demand views in their monthly market reports on Thursday, with the former raising its forecast for demand growth in 2022 due to gas-to-oil switching while the latter cut its forecast, citing slowing world growth.
Still, Brent was on track to climb more than 4% this week and WTI a weekly gain of more than 5%, rebounding after a drop to a six-month low last week.
By 02:00 ET, U.S. crude futures traded 0.4% lower at $93.97 a barrel, while the Brent contract fell 0.3% to $99.28.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.