The euro led the gains of today’s trading in the markets, with an increase of close to (0.46%), to record European stocks also rising to their highest levels in a week, to lead those gains in energy stocks, and the main stock exchanges in Europe extended their gains today, Thursday, as the DAX index added about 0.9%, and the DAX index rose The Stoxx 600 rose 0.6%, as investors evaluated the results of new companies while awaiting the release of the US consumer price index later in the day. The rise was also supported by Chinese trade data, which slipped to contraction at the beginning of this week.
The United States also announced a ban on foreign investments by American companies in the fields of advanced technology with China, which the United States and the eurozone have made efforts to prepare joint regulations to limit these investments, while the Biden administration announced its fear of China benefiting from American investments not only at the level The transfer of technologies, but also through intangible benefits through accompanying the establishment of production lines, the exchange of knowledge and access to markets, but Beijing stated that the new US measures to restrict investment in Chinese technology “severely disrupt the security of global supply chains.”
In terms of European fuel:
European natural gas futures fell to 38 euros on Thursday, after jumping to more than 40 euros on Wednesday for the first time since June on fears of dwindling LNG flows, which outweighed the fact that gas storage is at record levels. Europe’s fuel reserves are also more than 87% full, which is the highest level ever for this time of year. While the EU aims to be 90% full by November.
Coinciding with the release of US inflation data, the euro rose above $1.1, benefiting from the general weakness of the dollar, after the main and core inflation rate in the United States disappointed expectations. The data also boosted the odds that the Fed will leave interest rates steady in September and slightly lower bets for a rate hike in November. On the other hand, expectations in the financial markets were that the European Central Bank would raise interest rates more this year and keep them higher for a longer period after data showed that core inflation in the eurozone did not slow in July as expected.
