Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2023 04 14T015741Z 1 LYNXMPEJ3D01J RTROPTP 4 GLOBAL MARKETS - Business Express

European shares set for weekly gain on U.S. inflation outlook


European shares set for weekly gain on U.S. inflation outlook

By Elizabeth Howcroft

LONDON (Reuters) -European shares rose in early trading on Friday, with the STOXX 600 up for a fifth session in a row, as expectations rose that the U.S. Federal Reserve may soon finish raising interest rates.

Asian shares gained after the Monetary Authority of Singapore (MAS) surprised many by leaving policy unchanged, saying the tightening already underway would ensure inflation slowed sharply later this year.

Investors were betting that the Fed would only raise rates one more time in its rate-hiking campaign, after U.S. producer price data and labour market data on Thursday pointed to inflation cooling. This came after CPI data on Wednesday showed a small rise in U.S. consumer prices in March.

“The risk that the Fed will have to overdo it and cause a hard landing in its fight against inflation has receded,” said Holger Schmieding, chief economist at Berenberg. “This underpins … the general “risk on” mood in markets.”

“Markets are expecting that the rate gap between the Fed and the ECB will narrow further over this summer,” he added, citing expectations of further European Central Bank rate hikes.

At 0829 GMT, the MSCI World Equity Index was up 0.2% on the day, near its highest since mid-February.

The STOXX 600 was up 0.4%, in its fifth consecutive day of gains, and on track for a 1.5% gain on the week.

London’s FTSE 100 was up 0.3%.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

The euro benefited from expectations that the ECB will continue to raise rates, after data on Thursday showed euro zone industrial output was stronger than expected in February.

The euro was up 0.1% on the day at $1.10565, having earlier hit its highest in around a year, while European government bond yields were set for a weekly rise.

The benchmark 10-year German yield was at 2.379%, on track for a roughly 20 basis point rise on the week overall – its biggest weekly rise so far in 2023.

The U.S. dollar index was a touch lower, at 100.91, on track for its fifth consecutive week of declines.

Oil prices slipped after the West’s energy watchdog warned that output cuts could exacerbate an oil supply deficit and hurt consumers, but Brent crude futures and West Texas Intermediate crude futures were still set for a fourth week of overall gains.

Investors are now bracing for earnings from Citigroup Inc, Wells Fargo and JPMorgan Chase & Co which could test the bullish mood given recent stress in the sector.

“We will be looking at bank earnings calls to follow discussions around deposits, lending standards, and any adjustments to bank funding that might be planned, including more debt sales,” analysts at NatWest Markets said.

Investors are also waiting for U.S. retail sales data, due later on Friday.

(Reporting by Elizabeth Howcroft, additional reporting by Wayne Cole; Editing by Lincoln Feast and Alexander Smith)

Recent Post: