Investing.com – European stock markets fell slightly on Friday ahead of key inflation data amid uncertainty over future interest rate moves.
At 03:10 ET (0710 GMT), Germany was trading 0.2% lower, France was down 0.1% and the UK was down 0.1%.
The eurozone consumer price index is expected to be published
Major European indexes closed lower on Thursday, snapping a nine-day winning streak after several Federal Reserve officials said interest rates may have to stay high for longer, dampening some of the enthusiasm following a softer-than-expected , release of the US Consumer Price Index.
More inflation data will be released on Friday, with final data for April due later in the session.
It is expected to show consumer prices rose 2.4% year on year in April, marginally above the European Central Bank’s medium-term target of 2.0%.
The central bank is expected to cut interest rates in June, but traders remain unsure how many more cuts the central bank will agree to during the rest of the year.
ECB board member Isabelle Schnabel said the central bank could cut rates in June but should be cautious about cutting borrowing costs further given uncertainty about the outlook, the newspaper reported.
Traders have priced in 70 basis points for the ECB’s rate cuts this year, well above just under 50 basis points. easing laid down by the Fed.
HSBC falls on share sales report
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In the corporate sector, HSBC (LON:) shares fell following a Bloomberg report that its top shareholder Ping An Insurance may want to reduce its stake in the British bank.
The report states that there are several options, including “a further sale of shares similar to the $50 million sale announced last week.”
GSK (LON:) shares fell 0.5% after the British drugmaker said it had raised £1.25 billion (£1 = $1.2664) from the sale of its entire remaining stake in the consumer goods firm. Haleon products.
J Sainsbury’s Shares (LON:) rose 0.6% after the British supermarket group said it had agreed a five-year strategic partnership with tech giant Microsoft (NASDAQ:).
ABB (ST:) shares fell 1.1% after the Swiss engineering group agreed to buy the electrical installation products business from a German rival. Siemens (ETR:) in China, aiming to expand the company’s market reach and complement its regional offering to customers in the smart buildings space.
Oil on track for weekly gains
Oil prices rose on Friday, on track for weekly gains on signs of improving demand and slowing inflation in the United States, the world’s biggest oil consumer.
By 3:10 a.m. ET, futures were trading 0.4% higher at $79.59 a barrel, while the contract was up 0.6% at $83.79 a barrel.
Both contracts could post weekly gains of more than 1% on Friday, which in Brent’s case would be the first weekly gain in three weeks.
Oil markets were supported by a softer-than-expected rise in inflation, raising the prospect of rate cuts, potentially boosting future global economic activity and therefore oil demand.
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Falling prices in the US have also fueled hopes for improved demand, especially as the travel-heavy summer season approaches.
Additionally, shares rose 0.2% to $2,390.70 an ounce after trading just above 1.0863.