European futures moved into restrained growth
2022.12.16 03:39
European futures moved into restrained growth
Budrigannews.com – After a selloff during the previous session in response to the ECB’s hawkish message, European stock markets are anticipated to open slightly higher on Friday ahead of the release of a number of important economic data.
The contract in Germany was up 0.3 percent at 02:00 ET (7:00 GMT), the contract in France was up 0.3 percent, and the contract in the UK was up 0.5 percent.
On Thursday, it slowed down the rate at which it raised interest rates by 50 basis points, but it also said that the fight against inflation would continue with more significant tightening.
In a statement that was released in conjunction with the decision, Lagarde stated, “The Governing Council judges that interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive to ensure a timely return of inflation to the 2% medium-term target.”
Investment bank JPMorgan increased its forecast for how high interest rates in the Eurozone will rise to 3.25% from 2.50% as a result of this hawkish tone.
Investors will therefore carefully examine the upcoming economic data to gauge inflationary pressures and growth signals for indications of future central bank actions, with flash PMI data from and on deck for the day.
Friday morning, the United Kingdom reported a disappointing 0.4% month-over-month decline in November, a 5.9% year-over-year decline, and a sign that consumers are having difficulty balancing their discretionary spending with rising costs.
More Optimism is over-Asian stock market falls
Crude oil prices fell slightly on Friday, continuing their decline from the previous session due to worries about the economy’s future. However, they were poised for strong gains this week due to tightening supply and improved Chinese demand.
Following the U.S. Federal Reserve’s lead, the ECB and the both raised interest rates on Thursday, signaling further tightening. Fears of a global recession have increased as a result of this and weak economic data, resulting in lower energy consumption.
By 02:00 ET, the contract was down 0.1% to $81.12 and futures were down 0.2% to $75.95 a barrel.
The closure of the Keystone pipeline as a result of a leak and the likely resumption of full Chinese demand in 2023 as COVID curbs are lifted have helped both benchmarks to post weekly gains of over 6%, their highest weekly gains since early October.
Traded 0.3% higher at 1.0657, while rising to $1,793.55/oz.
