By Peter Nurse
Investing.com - European stock markets edged higher Friday in thin holiday-affected volumes, with investors digesting the release of more regional growth and inflation data.
At 04:05 ET (09:05 GMT), the DAX index in Germany traded 0.1% higher, the FTSE 100 in the U.K. climbed 0.1%, and CAC 40 in France traded largely flat.
Economic data released this week has helped the European markets approach the close of the year with a degree of optimism that the recession expected for the region in 2023 may not be as bad as first feared.
That said, factory gate prices out of France, the Eurozone’s second-largest economy, rose a hefty 1.2% in November, ahead of the drop of 0.2% expected, indicating the difficulties the European Central Bank will have controlling inflation in the region.
The Spanish economy only grew 0.1% in the third quarter, below the 0.2% expected, but the country’s GDP grew 2.0% the previous quarter, having been revised higher.
Trading is likely to be light Friday, the last working day before the Christmas holiday, with the U.K. stock market closing early.
That said, the bulk of attention will be on the U.S. economic data calendar, with personal consumption expenditures data, the Federal Reserve’s favorite inflation gauge due later on Friday, which will provide more clues on the direction of prices as 2023 draws near.
In corporate news, Stellantis (BIT:STLA) stock rose 1.4% after the world’s third-largest carmaker announced it has entered exclusive talks with France's Faurecia (EPA:EPED) and Michelin (EPA:MICP) to buy a "substantial" stake in their Symbio joint venture, a fuel cell system maker.
Inditex (BME:ITX) stock rose 0.2% after planned strikes at the fashion retailer’s Zara shops in the company's hometown in northern Spain were called off following an agreement on a pay rise.
Oil prices rose Friday on expectations that Russian supply will be reduced in the new year, while traders digest the impact of the winter storm hitting the U.S.
Russia will halt sales of its oil to the countries which support the price caps introduced by the G7 countries earlier this month, which may cut oil output by 5%-7% in early 2023, the RIA news agency cited Deputy Prime Minister Alexander Novak as saying on Friday.
This would tighten global supply even further, likely boosting prices as demand increases, particularly from China as it recovers from its latest COVID outbreak.
Meanwhile, a winter storm is hitting large parts of the U.S., triggering warnings from Maine to the Gulf of Mexico. This has resulted in thousands of flights being canceled, but also an increase in demand for energy to heat homes and offices.
By 03:50 ET, U.S. crude futures traded 1.4% higher at $78.56 a barrel, while the Brent contract rose 2% to $82.58.
Additionally, gold futures rose 0.5% to $1,804.55/oz, while EUR/USD traded 0.1% higher at 1.0601.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.