European Stocks Rise Friday But Head for Worst Weekly Drop Since April

TLDR

• European stocks edged higher Friday but are on track for their worst weekly performance since April
• The ECB raised interest rates and warned of higher inflation linked to rising energy prices
• Oil held above $100 per barrel for a third straight day due to Middle East tensions
• U.S. 10-year Treasury yield hovered just below the closely watched 5% level
• Markets are watching U.S. CPI data due later Friday ahead of next week’s Fed meeting

European stocks managed small gains on Friday morning, but the week as a whole has been rough. The pan-European Stoxx 600 rose around 0.2% to 0.3%, sitting near two-month lows after heavy losses earlier in the week.

London’s FTSE 100 was up just 0.07% on Friday but is heading for a weekly decline of more than 2%. Germany’s DAX added 0.25%, and France’s CAC rose 0.43%.

The UK economy offered some brighter news. GDP grew 0.4% in July, beating forecasts. Industrial production also rose 0.2% month-on-month, and the trade deficit narrowed to £3.45 billion.

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