Editor: Peter Nurse
investing. com – European stock markets are up on Friday. However, Britain’s weak GDP report increased growth concerns.
DAX, CAC 40
(mtag101708) and FTSE 100 rose 0.4%.
Concerns that the increasing Covid-19 events will damage the economic recovery momentum in the West, which has a high vaccination rate, especially in Southeast Asia, has hit the sentiment.
Europe’s major indices closed with a sharp decline on Thursday. DAX
(mtag101708) and FTSE 100 falling 1.7% CAC 40 lost 2%. The recovery in futures this morning, however, will not change the fact that Europe is underperforming the US. This is a reminder of how heavy the cyclical shares of growth sensitive to growth in the continent are.
England in May flash GDP reading, showing only 0.8% growth on a month-on-month basis, it fell sharply compared to the 2.0% growth rate seen in the previous month (this number was also revised downward). Manufacturing production fell 0.1% in May industrial production rose 0.8%. Both came in much lower than expected.
(mtag101708) (NYSE: PFE) and partner BioNTech (NASDAQ: BNTX) is developing a support Covid-19 vaccine targeting the delta variant.
Another development of interest will be the meeting of finance ministers and central bankers of the G20 economies, in Venice on Friday, for the first time since the beginning of the epidemic.
At the top of the agenda will be corporate tax reform, and the cluster is expected to approve new rules on where and how much companies should be taxed, first proposed by the G7 countries in June.
Oil, on the other hand, rose. Investors, US crude oil is struggling to balance the decline in its stocks and the increasing Covid-19 events and related growth concerns.
The U.S. Power Information Administration (EIA) reported Thursday that crude oil inventories dropped by nearly 7 million barrels, while fuel demand rose to 10 million barrels ahead of the July 4 holiday.
WTI was up 0.3% at $73.15 and has been on its way to its first weekly decline since mid-May. Brent contract rose 0.2% to $74.24.
on the other hand gold futures processes rose 0.1% to $1,800.70 EUR/USD was bought at 1.1831, down 0.1%.