Banking and retail sectors push European markets higher
On Thursday global shares gained, while the U.S. dollar settled below an 11-week high as investors reevaluated U.S. Federal Reserve statements on inflation and looked to upcoming data for direction.
Banking and retail stocks headed gains in Europe, as investors focused on an economic rebound against the backdrop of fears of a reduction in global monetary stimulus, while Carrefour rose on plans to possibly reorganize its foreign units.
The pan-European STOXX 600 gained 0.3% by 0702 GMT after being net flat on the week as mixed signals from the U.S. Federal Reserve left investors unsure about how much it was willing to let inflation run before it began unwinding its pandemic-era monetary policy.
Retail and banking stocks gained 0.5% and 0.7%, respectively. German shares gained 0.4% ahead of data that is expected to show business climate index climbing from two-year highs, while uneasiness over a Bank of England policy meeting on Thursday kept FTSE 100 shares stable.
French retailer Carrefour SA gained 0.9% after it said late on Wednesday it had started considering possible merging, divestitures or tie-ups of its foreign subsidiaries.
Britain’s FTSE 100 shares made smaller gains as investors waited for a Bank of England meeting for the latest indications about how soon stimulus could be removed as the economy rebounds back from the COVID-19 shock.
The MSCI world equity index was 0.1% higher, moving towards record highs hit earlier in June.
In Asia too markets made little gains. MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.1% higher, recovering from a one-month trough touched earlier this week, while Japan’s Nikkei was unchanged.
Oil prices gained for a second day after a larger-thananticipated drawdown in U.S. crude and gasoline stocks reiterated the position for strong fuel demand.
Brent crude futures gained 0.4% to $75.50 a barrel and U.S. crude gained 0.5% to $73.45 per barrel. Spot gold prices dropped 0.1% to $1,776.3 an ounce.