- 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 remains directionless near 1.0400
EUR/USD continues to fluctuate in a tight channel at around 1.0400 in the European session on Friday. The absence of fundamental drivers and thin trading conditions on the holiday-shortened week make it difficult for the pair to find direction.
GBP/USD extends sideways grind above 1.2500
GBP/USD moves up and down in a narrow band above 1.2500 on Friday after posting small losses on Thursday. The cautious market mood doesn't allow the pair to gain traction, while trading volumes remain low following the Christmas break.
Gold struggles to build on weekly gains, holds above $2,630
Gold enters a consolidation phase slightly above $2,630 on Friday after closing in positive territory on Thursday. The risk-averse market atmosphere helps XAU/USD hold its ground as investors refrain from taking large positions heading into the end of the holiday-shortened week.
Floki DAO floats liquidity provisioning for a Floki ETP in Europe
Floki DAO — the organization that manages the memecoin Floki — has proposed allocating a portion of its treasury to an asset manager in a bid to launch an exchange-traded product (ETP) in Europe, allowing institutional investors to gain exposure to the memecoin.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.