LONDON — European markets retreated on Friday as investors digest key central bank decisions, economic data and company earnings.
The pan-European Stoxx 600 index was down 0.2% in mid morning trade, barely trimming earlier losses. Autos shed 1.1% while oil and gas rebounded so as to add 0.8%.
The European blue chip index enjoyed a robust session on Thursday after three major central banks largely delivered on market expectations.
The European Central Bank hiked rates of interest by 50 basis points and signaled an extra hike of the identical scale in March, vowing to “stay the course” because it looks to reel in inflation.
The Bank of England also hiked rates by half a percentage point as expected, but dropped the word “forcefully” from its language on future mountain climbing, signaling that the top of monetary policy tightening could possibly be near. The Bank also forecast a “much shallower” decline in output than previously projected.
On Wednesday, the U.S. Federal Reserve raised its benchmark rate by 1 / 4 percentage point but gave little indication of an imminent end to its mountain climbing cycle.
Investors in Europe will probably be monitoring more corporate earnings releases on Friday, together with final January PMI (purchasing managers’ index) readings and December producer price figures from the euro zone.
Shares in Asia-Pacific were mixed on Friday as Adani Enterprises plunged nearly 20%, continuing a sell-off triggered by allegations raised by short seller firm Hindenburg.
U.S. stock futures mostly fell in early premarket trade after Apple and Google-parent Alphabet each missed estimates on the highest and bottom lines for his or her December quarters, sending tech stocks south. Investors stateside may even be seeking to a key data point Friday in the shape of the January jobs report.
