Investing.com - European stock markets traded in a mixed fashion in tight ranges, as investors awaited key inflation data for guidance of the future path of global monetary policy. At 03:10 ET (07:10 GMT), the DAX index in Germany traded 0.
2% lower, while the CAC 40 in France rose 0.1% and the FTSE 100 in the U.K.
gained 0.1%. Inflation data looms large European equities have retreated this week ahead of the release of a key inflation report from the eurozone, as investors weigh the shifting expectations over global rates.
Eurozone CPI is due for release later in the session, and is expected to show a slight tick higher to 2.5% on an annual basis in May, from 2.4% the prior month.
The European Central Bank is widely expected to cut interest rates next week, but there is uncertainty over what follows. Markets are pricing in around 60 bps of cuts from the ECB this year, but data released earlier Friday showing German retail sales slumping 1.2% on the month in April indicated that consumers remain under stress in the eurozone’s largest economy.
Over in the U.S., there is more inflation data to study, in the form of PCE price index data, the Federal Reserve’s preferred inflation gauge, later in the station.
A downward revision to U.S. GDP on Thursday stoked expectations that the Federal Reserve has room to cut rates this year, but this may prove unlikely if inflation continues to be elevated.
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