European stock markets saw modest gains on Friday, building on the positive momentum from Wall Street. Investors processed corporate earnings reports and the latest economic indicators. The Dow Jones Industrial Average hit a record high after President Trump called for lower interest rates from the Federal Bank.
European stock market s demonstrated a modest upward trend on Friday, extending the positive sentiment observed on Wall Street. Investors were actively absorbing a confluence of corporate earnings reports and the latest economic activity indicators. The Dow Jones Industrial Average surged to a record high following President Donald Trump's online address at the World Economic Forum in Davos, Switzerland.
President Trump articulated his intention to implore the Federal Reserve to implement lower interest rates. The spotlight in Europe will be trained on the release of key regional economic activity data, with British and European PMI figures anticipated later in the session.The European Central Bank is widely predicted to decrease interest rates by a quarter of a percentage point at its forthcoming policy meeting. This move would follow four previous reductions in borrowing costs aimed at mitigating sluggish growth and cooling inflation within the currency bloc. In contrast, the Bank of England raised interest rates by 25 basis points to approximately 0.5% earlier on Friday, marking its third increase since the initiation of its gradual withdrawal from ultra-loose monetary policy in early 2024.The European quarterly earnings season is poised to accelerate, and expectations remain relatively restrained. Analysts project average fourth-quarter earnings growth of around 1.5% compared to the previous year. However, this would still signify the third consecutive quarter of expansion, with forecasts indicating both profit and sales growth for the first time since the first quarter of 2023. Burberry stock experienced a surge of over 3% after the British luxury brand reported a 4% decline in quarterly comparable store sales for the third quarter ending in December. This outperformance exceeded market expectations of a 12% drop, attributed to robust festive demand in the Americas. Burberry now anticipates avoiding a full-year operating loss, having reported an operating loss in the first half. Meanwhile, BP stock climbed 2% following the announcement that the engineering giant secured the largest defense contract in its history. The UK Ministry of Defence awarded the company a £9 billion deal to oversee the development and support of nuclear reactors for the Royal Navy's submarine fleet. Conversely, Ericsson stock plummeted almost 9% after the Swedish telecom equipment maker fell short of analysts' forecasts for the fourth quarter. A projected rebound in sales to India failed to materialize during the period. OSRAM, the world's largest manufacturer of lights, reported a larger-than-expected decline in its full-year core profit and revealed that CEO Eric Rondolat would step down after the annual general meeting in April. Its stock price dipped by 2.6%. Oil prices stabilized on Friday but remained on track for a weekly loss. President Trump's calls for lower crude prices and increased US energy production weighed on the market. Both benchmarks traded over 3% lower for the week, marking their worst performance since November. This decline followed President Trump's signing of an executive order calling for increased US oil production while simultaneously easing certain climate-related restrictions on the energy sector. Furthermore, during his Thursday address at the World Economic Forum in Davos, Switzerland, President Trump urged Saudi Arabia and the Organization of Petroleum Exporting Countries to reduce oil prices.Uncertainty surrounding President Trump's plans for trade tariffs against major economies, which could potentially disrupt global trade and dampen oil demand, also contributed to the downward pressure.
STOCK MARKET EUROPEAN UNION OIL PRICES ECONOMIC DATA CORPORATE EARNINGS FEDERAL RESERVE EUROPEAN CENTRAL BANK
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