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Energy stocks boost European shares at open
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(Reuters) – European shares opened higher on Friday, as firmer crude oil prices lifted energy stocks, though the focus was also on a U.S. inflation print, which could be key in gauging the global monetary policy path.
(Reuters) – European shares opened higher on Friday, as firmer crude oil prices lifted energy stocks, though the focus was also on a U.S. inflation print, which could be key in gauging the global monetary policy path.
The pan-European STOXX 600 gained 0.4% as of 0710 GMT, after closing lower for the last three sessions.
Energy gained 1%, tracking higher crude prices, while banks advanced 0.8% early in the session. [O/R]
The U.S. personal consumption expenditures (PCE) data – the Federal Reserve’s preferred inflation measure- is due at 1230 GMT and could play a key role in gauging the central bank’s interest rate outlook.
On the continent, French consumer prices rose 2.5% year-on-year in June, in line with expectations, as per preliminary data.
Among individual stocks, Nokia added 3.5% after the Finnish firm agreed to buy Infinera Corp in a deal with an enterprise value of $2.3 billion.
Britain’s largest sportswear retailer JD Sports fell more than 5% after U.S.-based Nike forecast a surprise drop in 2025 revenue.
(Reporting by Shashwat Chauhan in Bengaluru and Jesus Calero in Gdansk; Editing by Eileen Soreng)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or the Personal Consumption Expenditures (PCE) index.
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.
The STOXX 600 is a stock index that represents large, mid, and small capitalization companies across 17 European countries. It is used as a benchmark for European equity markets.
Energy stocks are shares of companies involved in the production and distribution of energy, including oil, gas, and renewable energy sources. They are often influenced by fluctuations in energy prices.
The Personal Consumption Expenditures (PCE) index is a measure of the price changes in consumer goods and services. It is used by the Federal Reserve to gauge inflation and adjust monetary policy.
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