Skyscrapers in the La Defense business and financial district in Paris, France, on Monday, June 3, 2024.
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LONDON — European stocks started the day in the green Friday, defying a broader selloff, with fresh U.S. inflation data set to land.
The regional Stoxx 600 index was up 0.23% at 8:59 a.m. in London, topping 520 — its highest level since June 12. Telecom stocks rose 0.95% led by Ericsson, which jumped 8.6% after reporting a smaller revenue decline than analysts expected.
However, technology stocks more broadly took cues from Wall Street, retreating 0.4% after a choppy U.S. session in which investors rotated out of the “Magnificent Seven” into the rest of the market.
Reaction to the historic French and U.K. elections dominated the start of the week, but attention has moved to a flurry of inflation data.
On Thursday, the U.S. consumer price index declined more than expected to 3% annually, down from 3.3% in May.
Combined with “modestly dovish” comments from Federal Reserve Chair Jerome Powell earlier in the week, the inflation print left money markets pricing in a more than 90% chance of a September interest rate cut from the world’s biggest central bank, with another before the end of the year.
The data will be followed by the U.S. producer price index Friday, while German, French and Italian inflation readings will also be released.
Second-quarter earnings season is kicking into gear. Along with Ericsson’s results, Norwegian Air reported better-than-expected profit for the period, according to Reuters.
Stateside, several financial services giants including JPMorgan Chase, Wells Fargo and Citigroup report before the bell.