European stock markets were stable on Friday after three straight days of increases, keeping them on track for a weekly gain as investors look ahead to key US inflation figures.
The main pan-European STOXX 600 index was up slightly by 0.1%, with Germany’s DAX and France’s CAC 40 also seeing modest gains.
The main event is the US Personal Consumption Expenditure (PCE) report due later today, which is highly anticipated because it could influence whether the U.S. central bank, the Federal Reserve, decides to cut interest rates soon. Recent economic data and comments from some Fed officials have already led investors to expect an interest rate cut as early as next week.
In terms of market sectors, basic resources were the top performers, rising 1.3% after copper prices hit a new high, and industrial stocks also saw their fourth straight day of gains. Separately, the investment bank Citigroup set a positive forecast for the main European index by 2026 and upgraded several sectors, including autos and industrials, based on expected financial benefits.
Among individual company moves, Swiss Re fell 5.3% after its 2026 targets disappointed analysts, while Ocado surged 12.7% after the company announced it would receive a one-time $350 million payment from U.S. grocer Kroger for closing some planned warehouse facilities.
On the FX front, the US dollar remained weak on Friday, staying near its lowest level in five weeks compared to other major currencies.
The dollar was especially weak against the Japanese yen, which was boosted to a nearly three-week high because investors expect the Bank of Japan to raise its interest rates later this month. The dollar index, which tracks the dollar’s value against six other currencies, fell 0.2% and is heading toward a 0.6% decline for the week overall.
In contrast, other currencies saw gains: the euro rose 0.1%, moving back toward its three-week high; the British pound gained 0.2%, approaching a six-week peak; and the Australian dollar advanced 0.3%, reaching its strongest point in over two months.
The Swiss franc also saw a small gain against the dollar.
Currency Power Balance