European stocks rose after closing Wall Street record highs. Shares increased early in trading on Thursday, ahead of U.S. inflation data on Friday; This was when several countries imposed social restrictions to combat the spread of the Omicron coronavirus variant. The Stoxx Europe 600 Index grew 0.3 percent. The exact amount increased for the London FTSE 100.
The Wall Street and Stoxx S&P 500 hit a two-day high of 2021 earlier in the week; Since early data from South Africa suggested that the Omicron strain may have been less severe than the Delta. While the U.S. capital gauge reversed almost all of its losses suffered in volatile trade; Following the emergence of Omicron markets in late November, it closed lower by 0.6 on Wednesday.
On Wednesday, the U.K. moved its plan B to implement restrictions. Among them is the recommendation to wear mandatory masks for indoor spaces and work from home. Virus control measures have been tightened by Italy, Denmark, Germany, and Poland following similar moves by eurozone countries. Europe’s largest tour operator, Tui, said that an increase in infection rates had affected the winter holidays.
At the same time, economists expect data released on Friday to show that consumer prices in the U.S. rose 6.8 percent during the year to November. This figure is even higher in the last three decades and exceeds the Federal Reserve targets. In recent months, it is worth noting that U.S. inflation has far exceeded the Fed’s targets due to supply chain disruption. This is due to higher fuel prices, coronavirus restrictions, and rising rents.
Wall Street Processes
Last week, Jay Powell, chairman of the Fed, said that he supports a faster cut by the central bank to $120 billion a month in bond purchases. This is what has strengthened the markets since March 2020. Economists predict that the Federal Reserve will complete its asset purchases in March. This will soon create the basis for the rate increase.
Asian markets were mixed on Thursday. CSI 300 rose 1.7 percent after official info showed that inflation decreased to 12.9 percent from the previous month. The Hang Seng Index rose 1.1 percent. Topix fell 0.6 percent. On Thursday, Fitch downgraded China Evergrande’s foreign currency credit rating to a limited default.
The 10-year U.S. Treasury bonds yield fell 1.5 percent to about 0.01 percent in public debt markets. The result of bonds reverses their prices in reverse. The dollar index rose 0.2 percent. The benchmark price for Brent crude oil was $75.84 a barrel, up about 0.1 percent.
European Trade Data
In Germany the DAX traded up 0.1%, the CAC 40 0.3%. Many European countries are still battling the fourth wave of the pandemic. Denmark has regulated the closure of bars, restaurants, and cafes. Lagardere shares rose 4.3% after Vivendi announced it would acquire less than 18% of Amber Capital in the media group in the coming days; It will then submit a complete application for a takeover bid.
Shares of Deutsche Bank fell 1.5% after reports surfaced that a German lender had silently breached a criminal agreement with the U.S. Department of Justice in silence over an internal complaint. Rolls-Royce shares fell 2.9%.
German trade data reported some positive news on Thursday. Exports rose robustly in October, up 4.1% after the summer fall. Imports also suffered a sudden jump. They were increased by 5% in the previous month after a 0.4% increase. The most significant focus will be publishing the latest weekly data on U.S. unemployment; As the most up-to-date measure of the country’s strength. Economists expect the number of first-time applicants to reach 215,000, slightly improving the previous week.
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