European Markets Steady Amid U.S. Inflation Speculations

European shares saw minimal movement on Friday, wrapping up the week with slight gains. Highlights included German stocks rising post-parliamentary success on a pensions bill and U.S. inflation data which anticipates a Federal Reserve rate cut. Key sectors like autos, retail, and technology showed robust performance.

On Friday, European stocks remained largely unchanged, closing the week with modest gains as investors scrutinized a long-awaited U.S. inflation report that alludes to a potential interest rate cut by the Federal Reserve next week.

The STOXX 600 index concluded the day flat at 578.87 points, following a three-day rally and closing the week up 0.4%. Germany's stock market experienced a 0.7% increase after Chancellor Friedrich Merz dodged a government crisis by passing a pensions bill in parliament.

The Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index, rose by 0.3% in September, meeting analyst predictions. This reaffirms expectations for a 25 basis points rate cut by the Fed next week, which significantly impacts global market sentiment. Key sectors like European autos, technology, and retail outperformed this week, with autos leading due in part to regulatory shifts in the U.S.

(With inputs from agencies.)