Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stock Futures Higher; Fed Officials Soothe Inflation Concerns

Stock MarketsMay 14, 2021 02:02AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets are seen opening higher Friday, helped by the rebound on Wall Street as Federal Reserve officials managed to ease investor jitters over growing inflationary pressures.

At 2:05 AM ET (0705 GMT), the DAX futures contract in Germany traded 0.1% higher, CAC 40 futures in France climbed 0.6% and the FTSE 100 futures contract in the U.K. rose 0.4%. 

All three major U.S. stock indexes notched solid gains on Thursday, bouncing back from three straight days of selling on worries that rising inflation will push the Federal Reserve into tapering its ultra easy monetary policies earlier than it is currently guiding. 

The blue-chip Dow Jones Industrial Average closed 1.3%, or over 400 points, higher, the S&P 500 gained 1.2%, its biggest percentage gain in over a month, while the Nasdaq Composite picked up the rear, rising 0.7%.

This positive tone has continued in Asia, with Japan’s Nikkei leading the rebound, gaining over 2%, and Europe is expected to follow suit.

Federal Reserve officials have been out in force reiterating that price pressures from the reopening of the economy would prove transitory. Overnight, Governor Christopher Waller signaled that rates won't rise for quite some time, echoing comments from Lael Brainard and Richard Clarida earlier in the week.

Back in Europe, evidence of inflationary pressures on this side of the pond will come from Spanish April CPI data, although the expected annual gain of 2.2% is nowhere near the levels seen in the U.S..

In corporate news, Toshiba (OTC:TOSYY) could be in the spotlight after Reuters reported that the Japanese firm’s European business has been hit by a cyberattack, just days after Colonial Pipeline suffered a similar fate in America.

Reckitt Benckiser (LON:RKT) could also be in focus after Reuters reported the British consumer goods company has shortlisted a number of bidders to submit binding offers for its infant formula business in China.

Oil prices edged lower Friday, continuing the previous session’s selloff amid a broad retreat in commodities that followed a sharp pick-up in consumer prices. Additionally, Colonial Pipeline, the largest fuel pipeline in the United States, resumed operations after an almost weeklong closure.

That said, losses are small as traders digest a broadly positive assessment of the outlook for demand growth from the International Energy Agency earlier in the week.

U.S. crude futures traded 0.6% lower at $63.42 a barrel, having fallen 3.4% on Thursday, the biggest drop in more than a month. The Brent contract fell 0.7% to $66.60. Both contracts have fallen around 2% this week.

Additionally, gold futures rose 0.2% to $1,827.30/oz, while EUR/USD traded 0.2% higher at 1.2098.

 

European Stock Futures Higher; Fed Officials Soothe Inflation Concerns
 

Related Articles

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.
Comments (2)
Max German
7Max7 May 14, 2021 3:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
oh yea according to rosengren there where noncredit problems in 2007-2008 aswell all paid to bull the market
Ricardo Diogo
rcd72 May 14, 2021 2:42AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
the inflation is due to the reckless way fed has handled , throwing mountain of unnecessary 💰 making raw materials to hit all time high
 
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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email