European stocks mixed; U.K. retail sales, corporate earnings in focus
Investing.com — European stock markets traded in a mixed fashion Friday, as investors digested more corporate earnings as well as stronger than expected U.K. retail sales.
At 03:40 ET (07:40 GMT), the DAX index in Germany traded 0.4% lower, the FTSE 100 in the U.K. traded flat and the CAC 40 in France rose 0.3%.
Britain's retail sales data for June leads a light global economic calendar Friday, and grew by 0.7% on the month, more than the expected 0.2%.
This still represents an annual drop of 1%, but this is better than the 1.5% fall predicted.
«Retail sales grew strongly, with food sales bouncing back from the effects of the extra bank holiday, partly helped by good weather, and department stores and furniture shops also having a strong month,» ONS chief economist Grant Fitzner said.
However, this followed the release late Thursday of the July GfK consumer confidence gauge, which fell for the first time in six months, suggesting the reality of soaring inflation is starting to hit the U.K. consumer.
This could weigh heavily on economic growth as the year progresses, as the Bank of England is widely expected to continue its rate-hiking campaign next month given inflation remains well above target, even after slowing more than expected in June.
The European Central Bank is also widely expected to raise its benchmark rate at its next meeting, but its policymakers are in a blackout period ahead of next week’s rate decision.
The quarterly earnings season continues Friday, although at a slightly slower pace as the week comes to an end.
Glencore (LON:GLEN) stock fell 0.9% despite the mining giant announcing that it now expects profits at its trading division this year of up to $4 billion, exceeding its long-term annual
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