European stocks dropped slightly on Friday as investors waited for new economic information from Europe and a major US inflation report. These reports could give hints about when interest rates might be lowered in both regions.
The STOXX 600 index was down 0.2% and was on track for its first weekly loss in a month. This week, worries about a possible collapse of the French government and questions about the independence of the US Federal Reserve have put pressure on the stock market.
Recent data showed that consumer prices in France went up a bit less than expected in August. Later today, investors will be focused on new figures from Germany and the U.S. personal consumption expenditures report. In other news, shares of the French spirits company,
Remy Cointreau, went up by 1% after the company said a new trade agreement between the US and the EU would reduce the negative effect of US tariffs on its products.
On the data front, Inflation in France, Spain, and Italy came in slightly below forecasts, at 0.8%, 2.7%, and 1.7% respectively.
On the FX front, the euro’s value stayed the same at $1.1677, while the British pound dropped slightly to $1.3474. Despite these small changes today, both currencies are set to have a good month, gaining more than 2% against the dollar. The dollar’s value against the Japanese yen remained stable at 146.975 yen.
Elsewhere, the New Zealand dollar became a little stronger after the chairman of New Zealand’s central bank, Neil Quigley, resigned. His resignation was due to controversy over how the central bank’s governor had suddenly quit earlier in the year.
Meanwhile, China’s currency, the yuan, reached its highest value against the dollar in 10 months. This is happening because China’s central bank has kept its currency fixings stable and because of a booming stock market in China.
On the other hand, the Indian rupee fell to its lowest value ever, due to concerns about how new, high tariffs from the U.S. will affect India’s economy.
Currency Power Balance
