Following recent losses, European stock markets are anticipated to open slightly higher on Friday. However, gains will likely be cautious in light of the most recent U.S. inflation data.
Germany’s DAX futures contract rose 0.32%. French CAC 40 futures contract rose 0.31%. Moreover, the UK FTSE 100 futures contract rose 0.3%.
Equity markets had a difficult week. The broad-based S&P 500 index on Wall Street should lose 2.62%, and the Frankfurt DAX index should lose 1.823%, as investors worried that tightening monetary conditions will likely lead to a global recession in 2023.
The United States will hold policy-making meetings next week. The Fed and the ECB should increase interest rates to combat persistently high inflation.
However, with signs that inflation may have peaked, the Fed, in particular, may begin to scale back its rate hikes.
PPI should have risen 0.23% month on month in November, for an annual rise of 7.23%, down from 8.03% the previous month.
Friday’s economic calendar in Europe is largely empty, with Spanish industrial production expected to rise 2.83% year on year in October, down from 3.6% growth the previous month.
In corporate news, Credit Suisse (SIX: CSGN) announced late Thursday that it had raised CHF 2.24B ($1=CHF0.9333) through a capital raise.
Crude oil prices rose from one-year lows on Friday as traders sought bargains. However, the week should end with heavy losses due to concerns that the global economy will enter a recession in 2023. The closure of the Keystone pipeline between the United States and Canada following a spill in Kansas boosted sentiment. However, the supply disruption shouldn’t last long.
U.S. crude futures were 0.632% higher at $71.912 per barrel, while Brent futures were 0.6% higher at $76.57.
The two contracts should lose about 10% this week after falling to their lowest levels since December 2021.
Furthermore, gold futures rose 0.4% to $1,8017.95/oz, while the EUR/USD rose 0.3% to 1.05182.