📆 Friday, August 9
► European stocks rose at the end of a week of high volatility. The Stoxx 600 rose 0.7% as investors digested mixed signals, including an unexpected rise in inflation in Germany to 2.3% in July and strong earnings from Siemens. The German DAX climbed 0.4%, while the French CAC 40 gained 0.6%. The UK's FTSE 100 gained 0.5%, with cyclical stocks such as travel and leisure and tech stocks leading the rise. European equities also benefited from strong gains in New York the previous day. Bond yields remained subdued: the 10-year German yield fell by 3 basis points to 2.25 % and the 10-year UK yield was slightly lower at 3.95 % (down 3 basis points).
► US equity futures continued to rise after Thursday's strong rally. Despite yesterday's strong gains, the S&P 500 remains on track for its fourth consecutive weekly decline. Despite a positive initial jobless claims report that helped reduce fears of a recession, the market remains cautious overall ahead of next week's key economic data, particularly consumer inflation and retail sales. Concerns over a possible unwinding of JPY carry trades and continued economic uncertainty have also led to caution. Treasury yields are slightly lower and the USD is unchanged. According to SmartTrader chief analyst Robert Lindner, the positive market sentiment remains in place in pre-market US trading and probably also in the first half of the day.
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