A Dax sign is seen on the floor of the Frankfurt Stock Exchange. The Dax 30 rose 0.66% to 8,212.77 points in yesterday’s trading as traders weighed higher inflation data in the US and signals from China that growth this year could be slower than forecast.
AFP/London
European stock markets rose slightly yesterday, as traders weighed higher inflation data in the US and signals from China that growth this year could be slower than forecast.
London’s FTSE 100 index of leading shares added just 0.02% to end at 6,544.94 points, Frankfurt’s Dax 30 rose 0.66% to 8,212.77 points and in Paris the Cac 40 increased 0.36% in value to 3,855.09 points.
The euro fell to $1.3041 from $1.3092 late in New York on Thursday. The dollar grew to ¥99.44 from ¥98.90.
The price of gold dropped to $1,279.75 an ounce from $1,285 Thursday on the London Bullion Market.
Wall Street was subdued with the Dow Jone Industrial Average down 0.05% and the tech heavy Nasdaq off 0.11%.
Indices had risen on Thursday, including to record highs on Wall Street, after the Federal Reserve indicated that it was in no rush to end its huge programme for stimulating the US economy.
Federal Reserve head Ben Bernanke said on Wednesday that the US central bank’s stimulus drive would be kept in place “for the foreseeable future”.
But inflation news yesterday dented confidence that stimulus would be around for too much longer. US producer prices rose more than expected in June, the second straight month of increases led by higher energy costs, government data released yesterday showed.
The Labour Department said its producer price index rose 0.8% in June. The PPI index had climbed 0.5% in May after two months of declines.
The news helped refire market expectations that the Fed would start to pull back on massive bond-buying later this year, which has sent global equity indices reeling in recent weeks.
China’s finance minister, meanwhile, said he expects the nation’s economy to grow 7% this year, raising questions about whether it can achieve the official 7.5% target set four months ago.
Lou’s remarks come as worries mount over China’s growth prospects following a slew of weak data on manufacturing and exports.
China is due to announce gross domestic (GDP) product figures for the second quarter on Monday. The median forecast in a survey of 10 economists by AFP was for GDP growth of 7.5%.