European stock futures edge lower; U.K. GDP grows slightly more than expected By Investing.com



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Investing.com – European stock markets are expected to open lower Friday, with investors digesting fresh U.K. growth data, while the rise in U.S. inflation has done little to improve sentiment.

At 02:00 ET (06:00 GMT), the contract in Germany traded 0.4% lower, in France dropped 0.5% and the contract in the U.K. fell 0.2%.

The main European indices recorded strong gains on Thursday, but are likely to hand back some of these advances as the week nears its end and investors digest the latest U.S. inflation data.

Although the grew as expected in July from the prior month, boosting expectations that the Federal Reserve will keep rates unchanged in September, it remained substantially above the central bank’s medium-term target, implying rate cuts are still some way off.

U.K. GDP shows little growth

While the Fed could pause next month, the is seen continuing to tighten monetary policy with among the highest in the developed world.

That said, U.K. rose slightly more than expected in the second quarter, climbing 0.2% on the quarter and 0.4% on an annual basis, rising 0.5% in June alone.

Elsewhere, the rose to 7.2% in the second quarter, up from 7.1% the prior quarter, while and inflation numbers for July are due later in the session.

Across the pond, Fed policymakers will have another inflation reading to digest in the form of the , as well as data.

UBS terminates Credit Suisse takeover backstop

The quarterly earnings season is starting to ease down, with a few tier-one companies scheduled to report earnings Friday.

Switzerland’s biggest lender UBS (SIX:) said Friday it will not need to take advantage of the Swiss government’s over $10 billion backstop agreed as part of the state-sponsored takeover of Credit Suisse.

Crude largely flat; OPEC retains oil demand growth forecasts

Oil prices steadied Friday, with traders trying to digest U.S. inflation data, concerns about a stuttering economic recovery in China, the world’s largest oil importer, as well as optimistic demand forecasts from OPEC.

Thursday’s U.S. CPI release saw the climbing, hurting the crude market as it makes the commodity more expensive for buyers holding foreign currencies.

Growing concerns over China’s economy also weighed on oil markets, but this was counterbalanced by the Organization of the Petroleum Exporting Countries confirming on Thursday that it still expects world oil demand to rise by 2.25 million barrels per day in 2024, compared with growth of 2.44 million barrels per day this year.

By 02:00 ET, the futures traded 0.1% lower at $82.76 a barrel, while the contract dropped 0.1% to $86.30. 

Additionally, fell 0.1% to $1,947.65/oz, while traded 0.1% higher at 1.0993.


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