European stocks fall as inflation and oil demand measure markets

European stocks fell on Friday, playing a catch-up with broad end-Thursday sales on Wall Street, as inflation concerns continue to weigh on markets and falling oil prices amid optimistic demand.

The pan-European Stoxx 600 SXXP,
was 0.4% lower while the FTSE 100 UKX was in London,
immersion more than 0.6%. An CAC 40 PX1,
in Paris 0.7% was flat and DAX DAX at Frankfurt,
fell 0.4%.

Dow YM00 futures,
+ 0.11%
marking around 60 points, set for a soft opening after falling more than 150 points Thursday to close at 32,862.

Concerns about inflation remain the strongest force behind market sentiment, according to Han Tan, an analyst at FXTM, as bond yields remain under scrutiny. Yield on 10-year US Treasury Department TMUBMUSD10Y,
holding below 1.7%.

Read: What we learned – and what we did not learn – from Jerome Powell’s press conference

Tan also noted that “quadrilateral witchcraft” on Friday – a date on which individual stock options and futures and a stock market index come out at the same time – would likely cause more volatility. “But the outcome of erratic bonds still tends to be the main culprit going forward,” Tan said.

The COVID-19 pandemic continues to loom over European markets, as Paris prepares for a month-long lockout starting Friday night amid fears France is facing a wave another major course of coronavirus diseases.

Vaccines are expected to be released in the European Union, following the decision by the European Medicines Agency that the COVID-19 vaccine will be developed by the drug company AstraZeneca AZN,
and Oxford University was “safe and effective.”

The regulator has reviewed the vaccine following reports of blood clots in people who have been shot, with many European countries, including Germany and France, temporarily suspending the vaccine. to give.

Read more: EU regulator calls AstraZeneca vaccine ‘safe’ after blood clot examination

Oil prices are slowly climbing after a sharp fall late on Thursday, as “oil sentiment towards Europe seems to be at the bottom of the rock right now,” according to Axi analyst Stephen Innes. The benchmark price of Brent crude BRN00,
+ 1.19%
it climbed past the $ 64 per barrel mark, down from above $ 68 on Thursday.

“Still, as the vaccine continues its global journey, with major European countries beginning to use the AstraZeneca dose, a steady recovery in global demand is expected at some point. soon, ”said Tan.

Leading European oil companies have reduced the cost, with shares in BP BP,
Royal Dutch Shell RDSA,
TOTAL total,
and Eni ENI,
all falling.

stocks lost more than 2%, eliminating some of the gains from a rally earlier in the week as the market chewed the company’s earnings and full-year strategy around electric vehicles.

Shares in Italian electricity and gas company Enel ENEL,
+ 1.93%
they are nearly 2% after the group’s full-year earnings exceeded expectations.

NatWest NWG,
+ 0.81%
stocks rose nearly 2%, after the UK government sold £ 1.1 billion ($ 1.5 billion) of shares back to the British bank, representing around 5% of the total shares issued mach. The sale cuts the government’s share to less than 60%.