European stock futures mixed; U.K. economy contracted in May
Investing.com — European stock markets are expected to open in a mixed fashion, as investors digest the softer-than-expected U.S. inflation data as well as weak U.K. growth data.
At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.1% lower, while CAC 40 futures in France climbed 0.2% and the FTSE 100 futures contract in the U.K. rose 0.1%.
The main European stock indices posted healthy gains Wednesday, with the DAX, CAC 40 and FTSE 100 all closing well over 1% higher, after soft U.S. consumer inflation data raised hopes that July’s expected interest rate increase by the Federal Reserve could be the last in this tightening cycle.
There was a deluge of economic data releases from the U.K. earlier Thursday, with GDP, industrial output and manufacturing production having contracted in May from the previous month.
The Bank of England has authorized 13 consecutive interest rate rises as it attempts to tame the highest inflation rate in the G7, and with more hikes likely these numbers suggest Britain is heading for a recession.
Additionally, the European Central Bank releases its June policy minutes, while French inflation numbers and eurozone industrial production are also due.
The news out of China earlier Thursday wasn’t positive either, as data showed that the Asian giant’s exports shrank 12.4% on an annual basis in June, at their worst pace since March 2020, the height of the COVID-19 pandemic.
Imports also fell 6.8% in June, falling at their fastest pace since March this year, and a much deeper contraction than the 4.5% seen in May.
These numbers show how badly China’s reopened economy is stuttering, to the detriment of many of Europe’s major exporting companies.
Barry Callebaut (SIX:BARN) will be in
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