Oct 14, 2022
VOT Research Desk
The DAX in Germany traded 1% higher, the CAC 40 in France increased 1%, and the FTSE 100 in the United Kingdom increased 1% as of 03:50 ET (07:50 GMT).
After the most recent inflation data from the United States, European stock markets traded sharply higher on Friday. Meanwhile, rumors grew that the United Kingdom government would abandon its plans for massive unfunded tax cuts.
Despite yet another hot U.S. inflation reading, European equities maintained their positive tone, and U.S. stocks surged to finish more than 2% higher on Thursday, reversing sharp falls.
The gains in global stock markets suggest concerns that inflation gains were going to be even more substantial, despite investors clearly pricing in another leap in short-term borrowing costs from the Federal Reserve.
Reports that the United Kingdom government may abandon the 43 billion pounds ($48.6 billion) of unfunded tax cuts included in its so-called “mini-budget” a few weeks ago have boosted sentiment back in Europe.
This came about as a result of the British Finance Minister Kwasi Kwarteng’s decision to shorten his trip to Washington and return to London late Thursday. On Friday, the Bank of England was scheduled to end its emergency bond purchases.
TomTom (AS: in business news)After the Dutch navigation and digital mapping company released its third-quarter results, the stock of TOM2) fell 6%, and Ashmore (LON: The investment manager’s assets under management decreased by $8 billion in the first quarter, prompting investors to avoid riskier bets due to geopolitical and economic uncertainty. As a result, the stock price of ASHM) decreased by 2.6%.
Six: Credit Suisse The Spanish press reported that the Swiss bank is considering selling its stake in the Madrid-based tech company Allfunds to raise cash, causing the stock of CSGN to rise 0.5%.
Temenos, SIXTH:The Swiss banking software company issued a profit warning, stating that its customers have become more cautious due to macroeconomic uncertainty and rising costs. This caused the stock of TEMN) to fall by 20%
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After a spike in China’s COVID-19 cases and a larger-than-expected increase in U.S. crude inventories raised concerns about global demand, oil prices edged higher on Friday but still appear poised to suffer a weekly loss.
Cases of COVID continue to occur in China, the world’s largest importer, including in Shanghai, the nation’s financial center, posing a threat of new lockdowns that could significantly reduce demand.
Additionally, official data from the United States Energy Information Administration revealed that crude inventories increased by 9.9 million barrels last week, which was significantly more than anticipated.
U.S. crude futures were up 0.1% at $89.20 a barrel by 03:50 ET (07:50 GMT), while the Brent contract was unchanged at $94.58.This week, both contracts are down more than 3%.
Additionally, EUR/USD traded 0.1% lower at 0.9764, while gold futures fell 0.3 percent to $1,672.10/oz.
