European stocks advance, EZ CPI eyed

By FXstreet.com | Updated August 29, 2014 AAA

FXStreet (Córdoba) - European stocks advanced in early trade Friday, recovering some of yesterday’s losses, as investors await Eurozone CPI data, which may shed light on the ECB next move.

The Stoxx Europe 600 rose 0.24% to 341.87 in early trade. The index gained 1.7% this week, helped by expectations of ECB easing measures. As for country-specific indexes the UK FTSE climbed 0.14%. The Germany’s DAX 30 added 0.32% and the France’s CAC 40 rose 0.31%. Spain’s Ibex 35 was up 0.21% while Italy’s FTSE MIB gained 0.87%.

Expectations of further easing measures from the ECB have been growing since Draghi’s speech in Jackson Hole and have been fueled by dovish comments from other members of the Governing Council. In this regard, inflation data will be closely eyed as some suggested September action (or the absence of it) will rely on today’s figures.

Eurozone inflation, due at 9:00 GMT, is seen rising 0.3% in August following a 0.4% increase in July.

In the currencies market, majors seem to go through a consolidation phase, with the dollar from little changed versus rivals, with the main exception of the GBP, that is testing once again the 1.6600 resistance area.

As for commodities, gold eased 0.05% to $1,289 an ounce while crude oil rose 0.53% to $95.03 a barrel.

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