European Shares To Slip After Recent Gains
European stocks may slip on profit taking Friday after three consecutive sessions of gains.
Amid a lack of major triggers, trading may be influenced by reaction to the latest batch of earnings news.
Asian markets were subdued, as the dollar index held steady and Treasury yields surged on fears of renewed inflationary pressures in response to robust U.S. labor market figures released overnight.
Gold hovered near a two-month high and was on course for a third weekly gain amid expectations that the U.S. Federal Reserve may pause interest rate hikes after delivering a 25-bps rate hike next week.
Besides the Fed, policy meetings of the European Central Bank and the Bank of Japan are also due next week.
Oil prices rose about 1 percent in Asian trade amidst fears of lower supplies from Russia and signs of declining inventories.
Retail sales and public sector finance data from the U.K. are due later in the session, headlining a light day for the European economic news.
U.S. stocks ended mixed overnight as investors reacted to disappointing earnings news from the likes of Netflix and Tesla and signs the labor market remains tight.
Data showed weekly jobless claims fell to a two-month low, boosting rate-hike bets.
The Dow inched up half a percent to close higher for the ninth straight session, reaching its best closing level in over a year.
On the contrary, the S&P 500 shed 0.7 percent and the tech-heavy Nasdaq Composite plunged 2.1 percent.
European stocks rose for a third straight session on Thursday as investors digested more corporate earnings.
The pan European STOXX 600 edged up 0.4 percent. The German DAX rose 0.6 percent, while France’s CAC 40 and the U.K.’s FTSE 100 both gained around 0.8 percent.
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