Eurozone stocks edge higher as weak data offsets China support

Stock markets in the Eurozone climbed only marginally on Friday, as dismal economic data in the union countered optimism that China will loosen its long-running crackdown on the tech sector, news that sent Asian equities flying.

The dollar fell on profit-taking in foreign exchange after jumping to multi-year highs versus the yen and euro this week, with the US Federal Reserve expected to raise interest rates aggressively to tackle increasing inflation.

On the other hand, Russia’s central bank announced on Friday that it was lowering its benchmark interest rate for the second time in a row, citing a reduction in the danger of price increases and financial instability.

From 17 percent on Wednesday, the rate will drop to 14 percent.

As traders operate in the shadows of the Ukraine crisis, increasing inflation, US interest rate hikes, and China’s Covid lockdowns, market sentiment remains shaky.

The eurozone economy suffered the effects of the Ukraine war in the first quarter, with output slowing and inflation remaining at record highs, according to official figures released Friday, jeopardizing Europe’s recovery from the recession.

However, there was some welcome good news for China’s beleaguered tech sector.

The official Xinhua news agency reported that a meeting of the government’s decision-making body ended with officials saying it was “necessary to promote the healthy development of the platform economy” and “complete its rectification”.

The research suggests that the government’s broad crackdown on the country’s largest corporations will be eased.

Officials stated there was a need to “react to market concerns in a timely manner” at the Politburo meeting, which was led by Xi Jinping.

The stock markets in Hong Kong and Shanghai both increased by more than 2% on Friday.

In the United States, a positive earnings announcement from Facebook parent Meta on Thursday helped to offset Apple and Amazon’s disappointing results.

– ExxonMobil profits soar –

Elsewhere, oil prices jumped Friday as tight Russian supply fears help to offset weaker demand concerns fuelled by China’s lockdowns.

ExxonMobil reported that first-quarter profits more than doubled to $5.5 billion as high oil prices more than made up for costs connected to exiting its Sakhalin project in Russia.

Following Russia’s invasion of Ukraine in 1995, the US energy giant announced a phased departure from the massive Sakhalin offshore oil field it has operated since 1995.

The change cost the company $3.4 billion in one-time charges during the quarter.

Elon Musk, the CEO of Tesla, sold approximately $4 billion worth of shares in the electric automaker in the days after the board of Twitter agreed to his big buyout of the social media company, according to US market regulators.

– Key figures at around 1115 GMT –

London – FTSE 100: FLAT at 7,512.19 points

Frankfurt – DAX: UP 0.5 percent at 14,055.28

Paris – CAC 40: UP 0.2 percent at 6,522.46

EURO STOXX 50: UP 0.4 percent at 3,791.72

Hong Kong – Hang Seng Index: UP 4.0 percent at 21,089.39 (close)

Shanghai – Composite: UP 2.4 percent at 3,047.06 (close)

Tokyo – Nikkei 225: Closed for a holiday

New York – Dow: UP 1.9 percent at 33,916.39 (close)

Euro/dollar: UP at $1.0567 from $1.0509 late Thursday

Pound/dollar: UP at $1.2569 from $1.2468

Euro/pound: DOWN at 84.06 pence from 84.25 pence

Dollar/yen: DOWN at 130 yen from 130.79 yen

Brent North Sea crude: UP 1.7 percent at $109.38 per barrel

West Texas Intermediate: UP 0.9 percent at $106.33 per barrel