European Shares May Lack Direction As Trade Worries Loom
European stocks may move in a tight range on Friday as worries over U.S.-China trade tensions resurfaced.
U.S. President Donald Trump on Thursday accused China of not promptly buying more U.S. farm products that they said they would as part of a cease-fire in the two countries’ trade war.
Asian stocks traded mixed as investors awaited Chinese trade figures later today and quarterly GDP numbers as well as industrial output figures on Monday for direction.
Gold remained on track for a weekly gain while the dollar held steady after the release of stronger-than-expected U.S. consumer inflation data.
Oil prices rose in Asian deals after falling on Thursday as OPEC cut its 2019 oil production growth forecast for its non-cartel peers.
Eurostat is scheduled to issue euro area industrial output data for May later in the day. Production is forecast to fall 1.5 percent year on year, following a 0.4 percent drop in April.
Overnight, U.S. stocks ended mixed after the Trump administration backed down from a controversial effort to lower drug prices.
The Dow Jones Industrial Average climbed 0.9 percent to close above 27,000 for the first time ever and the S&P 500 gained 0.2 percent to reach fresh record closing high while the tech-heavy Nasdaq edged down 0.1 percent.
European markets ended Thursday’s session lower after the IMF and Bank of England spoke about risks from trade tensions, Brexit impact and Italy’s big deficit budget.
The pan European Stoxx 600 slipped 0.1 percent. The German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 all dropped around 0.3 percent.
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