European stocks are set to fall slightly on Friday as investors digest the European Central Bank’s latest policy meeting and look ahead to a key U.S. inflation print.
Britain’s FTSE 100 is seen around 39 points lower at 7,437, Germany’s DAX is expected to shed around 81 point points to 14,118 and France’s CAC 40 is set to drop by around 36 points to 6,322.
The ECB on Thursday confirmed its intention to hike interest rates by 25 basis points at its July meeting, with a further hike expected in September, the scale of which will be determined by the medium-term inflation outlook.
The central bank also raised its inflation expectations for the euro zone significantly and downgraded its growth forecasts.
European stocks fell sharply on Thursday in the hours after the decision and ECB President Christine Lagarde’s press conference, and are expected to continue to slide on Friday morning.
Global investors are also looking ahead to May’s consumer price index reading out of the U.S., due at 1:30 p.m. London time, which economists expect to slow slightly from the May print.
If the report matches expectations, or shows slower increases in consumer prices, Wall Street could deduce that inflation has peaked and that the Federal Reserve may need to be less aggressive in its monetary policy tightening later in the year.
U.S. stock futures moved slightly higher in early premarket trade on Friday ahead of the highly anticipated report, after stocks fell sharply during Thursday’s regular session.
Shares in Asia-Pacific were mixed on Friday as Chinese inflation data for May came in largely in line with expectations, and investors turned their attention stateside.
Back in Europe, the Central Bank of Russia holds its key rate meeting and announces its latest interest rate decision on Friday.
Data releases include Spain’s May inflation print and Italian industrial output figures.
Source: CNBC
Image Source: CNBC
