LONDON – European markets rose cautiously on Friday, following their global counterparts as sentiment rebounded after a rocky week.
The pan-European Stoxx 600 advanced 0.3% further at noon, but is still on track to end the week in the red. Basic resources rose 1.4%, while telecommunications fell 1%.
Shares in Asia-Pacific rose on Friday as Hong Kong-listed shares hit by China’s regulatory crackdown rebounded, after it was revealed that Beijing’s subsequent shares in gaming companies were not as harsh as first reported.
Future state stock indices were higher in pre-market trading after Wall Street posted a fourth consecutive day of losses on Thursday.
Weekly unemployment claims indicated that the recovery in the US labor market is on track, as the number of initial unemployment claims last week fell to 310,000, the lowest for almost 18 months.
European investors continue to digest the European Central Bank’s decision to slow down bond purchases as part of its pandemic emergency purchase program (PEPP) in response to higher inflation and stronger GDP growth on Thursday throughout the euro area. The ECB also modestly revised its medium-term inflation forecasts.
“We have at least four decisions for which we will have to return in December, in addition to the pace of PEPP for the first quarter of 2022: the future of PEPP beyond March (end the program or expand it and what to do with the “normal” APP of the QE program), a possible new round of economic lending to banks (TLTRO) and possible technical adjustments to asset purchase programs to ensure it can last longer, ”HSBC economists Simon said Wells and Fabio Balboni.
“For now, the relatively smooth upward revision of the inflation forecast should reassure the markets that more support will come.”
In other news, finance ministers from the major economies of the Group of Seven (G-7) said on Thursday that they need to make more technical progress in plans for global corporate tax reform.
German finance and justice ministries were stormed on Thursday as prosecutors investigated the government’s anti-money laundering agency, questioning the failures in the fight against financial crime in Europe’s largest economy.
On Friday, eurozone finance ministers will meet in Ljubljana, Slovenia, for informal talks.
In terms of data, the UK economy grew by just 0.1% in July, according to official statistics on Friday, as the spread of the Covid-19 delta variant slowed economic activity. until a drip after moderation of the blocking measures.
The final German harmonized consumer price index (CPI) grew by 0.1% month-on-month in August, an annual increase of 3.4%.
On Friday there was a significant move in stock prices. Swedish real estate firm Samhällsbyggnadsbolaget rose 4.2% after construction began on a new apartment.
At the bottom of the Stoxx 600, French oil firm Rubis fell 6% after problems in the Caribbean region weighed on its first-half profits that would improve.
Subscribe and CNBC PRO for exclusive information and analysis, and live workday scheduling from around the world.