US inflation data, China Covid measures

European stocks rose cautiously on Friday as global markets remained buoyant after a weaker-than-expected U.S. consumer price index signaled inflation may have peaked.

The pan-European Stoxx 600 was up 0.2% by late morning, after paring earlier gains of around 0.7%. Financials added 2.2% while healthcare stocks fell 1.7%.

Europe’s blue chip index closed 2.8% higher on Thursday after the release of the US consumer price index sent major US averages to their biggest one-day rallies. since 2020.

Markets are hoping the data could encourage the US Federal Reserve to ease its aggressive monetary policy tightening.

U.S. stock futures rose early on Friday, pointing to further gains on Wall Street, as investors also kept tabs on the bumper U.S. midterm election results.

Investor optimism was boosted on Friday after China said it would ease some Covid measures, sending Hong Kong Hang Seng Index surging more than 7% overnight.

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