LONDON – European markets continued subdued trading on Friday as investors hope for a rebound in the Chinese economy as Covid-19 restrictions are eased while assessing the prospects of a global recession.
The pan-European Stoxx 600 index hovered around the zero line in early trade, with travel & leisure stocks adding 0.9% to add gains, while oil & gas fell 0.8%.
After a relatively muted week for European equity markets, a number of significant risk events lie ahead next week, including the next Federal Reserve and Bank of England monetary policy meetings.
The Fed is expected to hike rates by 50 basis points — smaller than the last four moves of 75 basis points — but investors are increasingly concerned that the central bank’s attempt to contain inflation will trigger a recession next year can avoid.
Asia-Pacific stocks were higher overnight, along with Hong Kong hang seng Index gains as Chinese November inflation data came in around expectations.
In a remark released by state media on Thursday, Chinese Premier Li Keqiang said the country’s easing of Covid policies will allow the economy to gain momentum.
US stock futures were slightly higher in early premarket trade on Friday as traders eye fresh wholesale inflation data due later in the day.
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