By Carla Mozee, MarketWatch
Euro rises above $1.11
European stock indexes notched gains Friday, while the euro rose
after the release of inflation figures for the eurozone that may
help the European Central Bank chart its next move.
After spending much of the session switching between small gains
and losses, the Stoxx Europe 600 finished up less than 1 point at
396.37.
The pan-European index closed with a weekly gain of 0.4%. It
also rose 4% in July, the best monthly performance since February.
The monthly gain came during a frenetic pace of developments
surrounding Greece's debt crisis that eventually led to a restart
in negotiations aimed at Greece receiving a third bailout
package.
After a month of closure, the Athens Stock Exchange said late
Friday that trading in Greek stocks will resume Monday
(http://www.marketwatch.com/story/trading-in-greek-stocks-to-reopen-on-monday-2015-07-31).
Euro and inflation: The euro on Friday, meanwhile, rose after
the European Union's statistics agency said consumer prices in July
were 0.2% higher than a year earlier
(http://www.marketwatch.com/story/eurozone-inflation-stable-as-jobless-number-rises-2015-07-31),
meeting expectations of analysts polled by Dow Jones Newswires.
The euro later pushed above $1.11 after U.S. second-quarter
employment-cost data showed wage inflation was much lower
(http://www.marketwatch.com/story/us-employment-cost-index-decelerates-sharply-in-second-quarter-2015-07-31)
than previously suggested. The data prompted investors to shift
their expectations on the timing for an interest-rate increase to
December. Late Thursday, the euro bought $1.0930. Read more in
Currencies
(http://www.marketwatch.com/story/dollar-dips-versus-yen-euro-ahead-of-us-data-2015-07-31).
The eurozone's headline inflation rate remains below the ECB's
target of just under 2%. The core rate, which excludes prices for
energy, food and alcohol, rose to 1%. Analysts had expected a 0.8%
reading on the core rate.
"The current weakness of oil and commodity prices has increased
the risk that the eurozone could briefly dip back into deflation,
but it still seems probable that consumer-price inflation will
trend gradually up from the final months of 2015," said Howard
Archer, chief European and U.K. economist at IHS, in a note.
Improvement in eurozone economic activity and the weak euro are
among the factors that could lift inflation going forward, he
said.
Separately, Eurostat said the number of people without jobs in
the eurozone rose in June, by 31,000, while the jobless rate stayed
at 11.1%.
Indexes: Spain's IBEX 35 had been lower but recovered, ending up
0.1% at 11,180.70. The gain, however, was limited in part by a 12%
slide in Obrascon Huarte Lain SA (OHL.MC), triggered after the
construction company late Thursday said it planned to raise EUR1
billion euros ($1.10 billion) through a share sale. The IBEX 35
closed July with a 3.8% advance.
Germany's DAX 30 rose 0.5% to 11,308.99, and France's CAC 40
rose 0.7% to 5,082.261. The U.K.'s FTSE 100 rose 0.4%
(http://www.marketwatch.com/storyno-meta-for-guid) to 6,696.28.
For the month, the DAX rose 3.3% and the CAC picked up 6.1%. The
Footsie tacked on 2.7%.
Among Stoxx 600 movers on Friday, ArcelorMittal SA (MT) shares
rose 1.5% as the steel-industry heavyweight said second-quarter net
profit rose to $179 million
(http://www.marketwatch.com/story/arcelormittal-pressured-by-china-and-russia-2015-07-31-14855523)
from $52 million a year ago.
Airbus Group SE (AIR.FR) gained 3.5% after the company posted a
5% rise in second-quarter profit
(http://www.wsj.com/articles/airbus-reports-rise-in-profit-despite-charge-on-a400m-program-1438320279)
although it took a charge related to its A400M military transport
plane program.
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