European markets managed to stay above the fold at Friday’s close as investors digested US inflation data and looked to US interest rate decisions and the UK next week.
The pan-European Stoxx 600 rose 0.8% to 438.97, as Germany DAX added 0.74% to 14,370.72.
France CAC 40 gained 0.46% to 6,677.64, while London FTSE100 rose 0.06% to 7,476.63.
“European markets have spent most of this week slightly on the back foot, which is perhaps unsurprising given the gains we have seen over the past few weeks as an element of caution kicks in. game ahead of what should be a big week for the markets next week,” said CMC Markets Michael Hewson, Chief Market Analyst.
“With the Federal Reserve, ECB and Bank of England all set to raise rates by 50 basis points, attention now turns to what comes next amid slowing growth and doubts about the sticky nature of inflation, as yields fell slightly higher after the US PPI turned higher than expected for November.
New data out of the US towards the end of the day showed producer prices rose slightly faster than expected in November.
The producer price index rose 0.3% on the month, faster than the 0.2% forecast by analysts, and in line with the revised October figure.
Over the year, prices rose 7.4%, slowing from the revised figure of 8.1% a month earlier, but still above the 7.2% expected by market watchers.
Looking ahead, the US Federal Reserve is expected to raise rates by 50 basis points next week, down from its previous increases of 75 basis points.
Asia-Pacific stocks rose overnight, with Hong Kong’s Hang Seng index leading the gains as Chinese inflation data for November came broadly as expected.
People’s Republic Premier Li Keqiang also said the country’s easing of the strict Covid-19 policy would help its economy gain momentum.
In equities, UK investment manager group of men gained 5.34% after announcing a $125 million share buyback program.
Swiss credit was ahead 6.76% after the troubled bank on Thursday hailed a “significant milestone” in its recovery plan, raising CHF 2.24 billion as part of a CHF 4 billion cash call.
On the decline, Carl Zeiss Meditec fell 3.18% after the German medical technology company issued a weak first-quarter earnings outlook.
Reporting by Josh White for Sharecast.com. Additional reporting by Frank Prenesti.