European stocks were unchanged on Friday but held near record highs as investors soaked up the latest comments from Federal Reserve Chairman Jerome Powell and new data showing rising inflationary pressures in China. The Stoxx Europe 600 SXXP, + 0.03% was trading flat at 436.71. The index rose 0.6% to 436.86 on Thursday, marking a record close. The German DAX DAX, -0.12% was 0.1% lower and the FTSE 100 UKX index, -0.21% fell 0.3%, while the French CAC PX1, + 0.18% rose 0.1%. The pound GBPUSD, -0.32% and the euro EURUSD, -0.21% were weaker against the dollar.
US stock futures ES00, + 0.11% YM00, + 0.14% also changed little, and Nasdaq-100 NQ00 futures, -0.09% sloped slightly lower as the performance of the note from the 10-year Treasury TMUBMUSD10Y, 1.672% rose to 1.67%. The yield on the German 10-year bond TMBMKDE-10Y, -0.306% was up 1 basis point to –0.315%. The S&P 500 SPX Index, + 0.42% posted its 19th record close in 2021 on Thursday, led by tech stocks backed by Treasury yields that have been easing of late. Fed Chairman Powell repeated his view that any rise in inflation this year would be temporary in a webinar hosted by the International Monetary Fund on Thursday. But stocks in China and Hong Kong fell on Friday after China reported higher consumer prices in March, due to higher fuel prices, while producer prices rose at the fastest pace in more than four years. Investors have spent months fending off concerns that a stronger growth pickup from the pandemic could trigger inflation that central banks would try to cool, possibly through interest rate hikes. “It is a clear sign of strong demand for products made in China, as well as an indication of rising raw material costs,” said Neil Wilson, chief market analyst at Markets.com. Elsewhere, German and French industrial production saw surprise declines in February as lockdowns hit those economies. But German exports continued to rebound in February despite lockdown restrictions driven by the pandemic. Spanish industrial production also stagnated. Among moving stocks, TUI TUI shares, -6.19% fell 7% after the travel and tourism multinational suffered a technical mishap on a flight that assigned the wrong weight to some passengers, causing a flight will take off 1,200 kilos heavier. than it should have been, according to reports. The company also launched a convertible bond offering worth 350 million euros ($ 416 million). Spain Construction and Services Activities ACS, -0.68% confirmed its interest in the purchase of ATL from the Italian holding company Atlantia SpA, + 0.92% stake in the motorway operator Autostrade per l’Italia with an estimated business value between 9 and 10 billion euros ($ 10.73 billion to $ 11.92 billion). Shares of Atlantia rose 3.3%, while those of construction and engineering company ACS fell 0.4%. Airbus AIR shares, + 2.98%, rose more than 2% after the aircraft maker released deliveries and order numbers Thursday night, reporting 72 deliveries in March. “While the majority of deliveries were of the A320 family, we were encouraged by the 8 A350 deliveries in March (compared to 2 in January and February combined). We remain confident this year, but we remain concerned about the balance between supply and demand in the long term, “said Citi analyst Charles J. Armitage.