is a great resource for investors. European market prices are expected to open in a mixed manner on Friday as traders weigh an array of interest rate increases ahead of a fiscal report by the newly elected U.K. administration.
At 02:02 ET (06:00 GMT), the futures of the DAX contract from Germany was trading 0.3 percent lower. the CAC 40 the futures in France fell 0.3 percent, and it was the FTSE 100 futures contract in the U.K. rose 0.2%.
European equity markets are destined for massive weekly losses, as the increasing interest rates around the globe could dramatically slow economic growth, and weigh on risk-aversion.
Related: Fed’s Increase Sets Tone for BOE, SNB; European Stock Futures Fall
The Federal Reserve led in this direction, increasing rates to 75 basis point, signalling a more aggressive approach in the fight against inflation. The move was later followed by Europe by rate hikes from The Bank of England as well as The Swiss National Bank and the Norges Bank in Norway.
The European Central Bank was also tightened by an astonishing 75 basis points in the in the last week.
The macroeconomic outlook for Europe is grim, HSBC warned Friday, in an advisory note in which interruptions in supply and effect of Russia’s conflict in Ukraine on food and energy prices continue to dampen expansion and make central banks have to tighten their monetary policies to limit rising inflation.
“I would caution against buying Europe because of the cheaper valuations and interest rate movements,” an analyst from HSBC stated.
However, the U.K. market could outperform Friday as the finance minister, who is a newcomer, Kwasi Kwarteng set to deliver his first update on the state of the economy to the Parliament, also known as a “mini Budget”. The minister is expected to give further details of the plans he has in place to boost the economy of the country through what is expected to be a challenging winter.
Economic data to be released in Europe Friday will include Spanish GDP for the second quarter, as along with the September manufacturing and services PMI figures for most of Europe.
In the news of corporates, Aveva (LON: AVV) will likely to be featured in the coming days, as The Financial Times reported that a major shareholder in the British IT-related consulting firm will not accept Schneider Electric (EPA: SchN)’s 9.5 billion pounds ($10.66 billion) offer to buy it that the French industrial company made public on Wednesday.
Prices for oil dropped on Friday, preparing for a fourth straight week of fall following a string rates hikes throughout the world. caused the risk of a global economic slowdown that could hurt energy demand.
The decision by Russia to increase its military attack on Ukraine by mobilizing additional troops to thwart the recent Ukrainian gains, has helped to reduce losses, however both contracts are heading for losses per week of about 2 percent in the wake of the tightening in monetary policy under the direction of Federal Reserve. Federal Reserve.
Related: European Stock Futures Edge Higher; Fed Meeting Set to Start
By 02:00 ET, U.S. crude futures were trading 0.2 percent lower, at $83.31 for a barrel. In contrast, the Brent contract decreased 0.3 percent to $90.22.
Furthermore, gold futures decreased 0.1 percent to $1,679.65/oz The the EUR/USD traded 0.1 percent smaller at 0.9829.
