Investing.com – European stock markets rose on Friday, regaining momentum as investors digested a series of strong corporate earnings ahead of the release of key U.S. inflation data.
At 03:35 ET (07:35 GMT), Germany was trading up 0.5%, France’s was trading 0.3% higher and the UK’s was trading up 0.6%.
European results season continues
European stock markets benefited from a good transfer from Asia, with most markets supported by gains in the technology sector as investors welcomed strong earnings from Microsoft (NASDAQ:) and Alphabet (NASDAQ:) after the American close.
Back in Europe, Natwest (NYSE:) shares rose 3.3% after the British lender reported first-quarter profit down 27%, hit by competition for savings products, from loan and mortgage loan which has reduced margins in the sector. This drop, however, was less than expected.
Britain’s biggest casualty of the 2008 crisis, NatWest (LON:) is seeking to end state ownership this year, seeking to sell the remainder of the government’s less than 29% stake in the bank.
TotalEnergies (EPA:) shares rose 0.4% after the energy giant reported a smaller-than-expected fall in first-quarter profit as the resilience of the oil market partly offset lower prices. gas price.
On the other hand, Saab (ST:) stock fell 3% despite the Swedish defense equipment maker, maker of the Gripen fighter jet, reporting a 28% rise in its operating profit for the first quarter and raised its outlook for organic sales growth for the first quarter. full year.
The Fed’s favorite inflation indicator in the spotlight
Economic news decreased slightly in April compared to March, while it increased slightly in the first quarter.
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However, most eyes will be on the release of US figures later in the session, as it is widely seen as the Federal Reserve’s preferred inflation gauge.
Data released Thursday showed growth in the U.S. economy slowed more than expected in the first quarter, but a short-term rate cut by the Fed is now considered unlikely.
The CME Fedwatch tool now shows that traders expect rate cuts only by September, or in the fourth quarter.
Crude should end its losing streak
Oil prices rose Friday and were on track to end a two-week losing streak amid bets on tighter supplies and lingering geopolitical unrest in the Middle East.
As of 3:35 a.m. ET, futures were trading 0.6% higher at $84.04 per barrel, while the contract was up 0.5% at $89.46 per barrel.
For the week, Brent has gained 2.5% so far, while WTI is up more than 1%.
Prices rose this week after U.S. inventories fell more than expected overall last week, indicating some tension in global oil markets.
Concerns over supply disruptions in the Middle East also remained relevant as Israel stepped up strikes against the militant group Hamas in Gaza, ensuring tensions remain high in the oil-rich region even as a war with Iran does not materialize.
Janet Yellen’s comments also helped, as the US Treasury Secretary said on Thursday that the disappointing first quarter US GDP figure could be revised upwards, with US economic growth likely stronger than quarterly data suggests weaker than expected.
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Additionally, the price rose 0.6% to $2,356.00/ounce, while it was trading just higher at 1.0730.
