Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

European Stock Futures Largely Lower; U.K. Retail Sales Surprise

Stock Markets Aug 19, 2022 14:26
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
EUR/USD
+0.07%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
XAU/USD
+0.34%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DE30
-0.41%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
+0.32%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
UK100
-0.27%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Peter Nurse

Investing.com - European stock markets are expected to open largely lower Friday as investors fret about soaring energy prices, tightening monetary policy, and slowing growth.

At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.4% lower, CAC 40 futures in France dropped 0.2%, while the FTSE 100 futures contract in the U.K. rose 0.1%.

Recession fears are starting to mount in Europe, with natural gas prices hitting record highs on Thursday adding to inflationary pressures just as Eurozone consumer prices were confirmed at an annual 8.9% in July, way above the European Central Bank’s 2% target.

This suggests that the region’s central bank will have to add another half-point rate hike in September, to July’s increase, which will exacerbate the risk of recession.

Economic growth in the Eurozone for the second quarter was revised down on Wednesday to 0.6% from 0.7% quarter on quarter.

There was some relatively good news Friday, as retail sales in the U.K. surprisingly rose 0.3% on the month in July, but this still represented an annual drop of 3.4% as British consumers continued to struggle with soaring prices–CPI climbed over 10% in July–reining in discretionary spending.

Consumer sentiment in the U.K. slumped as the record levels of inflation caused the GfK consumer sentiment index to sink to -44 in August from July's reading of -41, which was already the lowest since the survey began.

Adding to the negative sentiment was the news that German Chancellor Olaf Scholz is set to testify later Friday over his role as Hamburg mayor in tackling a multibillion-euro tax fraud in a case that threatens to tarnish him shortly after rising to the role of the country’s political leader.

Across the Atlantic, Federal Reserve policymakers were out in force Thursday, expressing the view that further interest rate hikes were needed to tame inflation. This puts next week’s Jackson Hole symposium firmly in focus for guidance over how far the Fed intends to go in tightening monetary policy.

Oil prices edged lower Friday, on course for a weekly loss despite a two-day rally midweek, as concerns over a global slowdown dampening demand for crude continue to hold sway.

Data released on Wednesday showing that U.S. crude inventories fell sharply last week helped reassure traders that U.S. demand was holding up despite the high price levels, but lingering recession fears and a possible increase in output by Iran have turned the market negative.

By 02:00 ET, U.S. crude futures traded 0.7% lower at $89.80 a barrel, while the Brent contract fell 0.6% to $95.97. Both benchmark contracts were headed for weekly losses of over 2%.

Additionally, gold futures fell 0.2% to $1,768.45/oz, while EUR/USD traded 0.1% lower at 1.0082.

European Stock Futures Largely Lower; U.K. Retail Sales Surprise
 

Related Articles

4 Insider Sells of Interest Today
4 Insider Sells of Interest Today By Investing.com - Sep 30, 2022

By Davit Kirakosyan Insider buying and selling activities are important for investors to pay attention to. While insiders sell for many reasons, including taxes, it doesn’t...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email