European stock markets continued their upward trajectory on Friday morning, shrugging off the negative sentiment seen earlier in the week. The Stoxx 600 index showed a slight increase of 0.07% by 10:30 a.m. GMT, retracing some of its earlier gains. Sectors displayed a mixed performance, with travel stocks advancing by 0.8% and autos declining by 0.4%.
The World Economic Forum in Davos, Switzerland, concluded after attracting numerous business leaders, politicians, central bankers, and campaigners. For a recap of Thursday’s events, readers can refer to CNBC’s coverage.
Overall, monetary policymakers have highlighted the progress made in achieving a 2% inflation target. However, there is skepticism regarding market expectations of an interest rate cut by the European Central Bank as early as March or April. This cautious outlook has dampened investor sentiment, leading to a reduction in bets on a spring rate cut.
Investor focus has now shifted back to the release of economic data and corporate earnings updates for the fourth quarter, as well as full-year guidance.
On Friday, there was disappointment in the UK retail sector as December retail sales slumped by 3.2%, surpassing expectations by a significant margin. It marked the largest monthly decline since January 2021 when pandemic-related restrictions impacted sales, according to the Office for National Statistics.
Source (CNBC)
