- European stocks climbed, bolstered by improving risk appetite on rate cut hopes.
- The UK saw a slight return to growth as UK GDP rebounds.
- US PPI fell more than expected, driving sentiment even higher.
Major European equity indexes broadly gained ground on Friday, stepping up ahead of the trading week’s close after UK Gross Domestic Product (GDP) grew more than expected. Bullish sentiment was sent even higher at the outset of the US trading session after US Producer Price Index (PPI) figures also fell below expectations, increasing bets of a sooner rate cut from the Federal Reserve (Fed).
UK GDP came in at 0.3% in November versus the forecast 0.2% rebound from October’s -0.3%, helping to spark a mild bull run in hesitant European markets.
The bullish sentiment swing pinned further into the high end after US PPI figures broadly slumped, with producer-level inflation cooling more than expected, sending a spike through money market expectations of an accelerated pace of rate cuts from the Fed, with investors now pricing in around 160 basis points in rate cuts through 2024 compared to yesterday’s upper limit of 154 bps.
Next week sees European Industrial Production for November, slated to print Monday, while Tuesday brings UK labor and wage earnings. UK Employment Change last came in at 50K in October, while Average Earnings is expected to fall back in both the Including & Excluding Bonuses, with Average Earnings Including Bonuses forecast to decline from 7.2% to 6.8% for the annualized quarter ended November.
Germany’s DAX climbed 0.95%, closing at €16,704.56, up by 0.95%, while France’s CAC 40 gained 1.05%, climbing 77.52 points to €7,465.14.
The pan-European STOXX600 index gained just under 4 points to climb 0.84% into €476.76, while London’s FTSEO major index rose 0.64% to close up 48.34 points at £7,624.93.
FTSE Technical Outlook
Despite a moderate gain on Friday, the FTSE 100 major London equity index is still off of recent highs, down from late December’s seven-month high of £7,763.54, slipping back into the 200-day Simple Moving Average (SMA) near £7,572.
Near-term action sees the FTSE 100 drifting steadily lower after slumping below the 200-hour SMA near the £7,700 handle, and the index continues to grind lower in lockstep with a bearish 50-hour SMA that confirmed a bearish cross off the 200-hour SMA near £7,670.
FTSE Hourly Chart
FTSE Daily Chart
FTSE Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds higher ground above 1.0800 ahead of US payrolls
EUR/USD is holding higher ground above 1.0800 in the European session on Friday. The pair extends its week-long winning streak amid a broad US Dollar weakness and an upbeat market mood. The further upside hinges on the US Nonfarm Payrolls data release.
GBP/USD rises toward 1.2800 after a landslide Labour victory
GBP/USD extends gains toward 1.2800 in the European session on Friday. The Pound Sterling is underpinned by the landslide Labour Party victory in the UK general election while the US Dollar awaits the Nonfarm Payrolls data for fresh directives.
Gold continues positive run as investors foresee lower interest rates
Gold rises on Friday, continuing its run of positive days as investors become increasingly optimistic the Fed will lower interest rates sooner than previously thought, and the US Dollar softens, adding a lift to Gold which is predominantly bought and sold in Dollars.
Bitcoin faces second largest liquidation event in history, erasing 25% of Base meme coins’ market cap
Bitcoin on-chain data confirms that the current correction represents the second-largest liquidation event in BTC’s history. Base meme coin market capitalization dipped over 25% in the wake of the market-wide decline in crypto prices.
Nonfarm Payrolls forecast to grow by 190K in June as Fed ponders rate-cut timing
With US Federal Reserve Chairman Jerome Powell’s Sintra appearance out of the way, all eyes now remain on top-tier Nonfarm Payrolls data for June, due on Friday at 12:30 GMT.