The major European averages are receding on Friday following three straight sessions of losses that broke an 8-session unstinted winning run. The major averages in the region opened higher and experienced some volatility in early trading, falling into negative territory by early trading. Subsequently, the averages have rebounded, but they again turned lower.In the afternoon, The French CAC 40 Index and the German DAX Index are moving 0.68% and 1.02%, respectively, while the U.K.’s FTSE 100 Index is gaining 0.67%.
On the economic front, the German Federal Statistical Office reported that German import prices rose 8.5% year-over-year in May, faster than the 7.9% growth in the previous month and the 8% increase expected by economists. Meanwhile, exports also rose at a faster rate of 3.6%. On a monthly basis, however, import price growth slowed to 0.6% compared to 2% in the previous month. Export prices increased 0.5% month-over-month in May compared to 1% growth seen in April.
The revised first quarter GDP report released by French statistical office INSEE showed that the French economy grew at an unrevised rate of 0.1% compared to the previous quarter. Foreign trade contributed to the growth, while consumer spending and government spending were essentially flat. Gross fixed capital formation declined 0.9%.
U.S. Economic ReportsThe Bureau of Economic Analysis released its revised first quarter GDP report, which showed that the U.S. economy expanded at a downwardly revised rate of 2.7% quarter-over-quarter. Economists had expected the preliminary GDP growth to be left unchanged at 3%.
The unexpected downward revision reflected a downward revision to consumer spending, which is now estimated to be up 3% compared to the 3.5% growth estimated initially.
The Reuters/University of Michigan's final report on the consumer sentiment index for June is scheduled to be released at 9:55 AM ET. The consumer sentiment index is expected to be left unchanged at 75.5.
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