CSFX Market News | Global Market Update

  EUROPEAN STOCKS HIGHER; POTENTIAL U.K. FISCAL U-TURN BOOSTS SENTIMENT European stock markets traded sharply higher Friday, continuing the global rebound after the latest U.S. inflation data, while speculation mounted that the U.K. government will abandon its plans for massive unfunded tax cuts. By 03:50 ET (07:50 GMT), the DAX in Germany traded 1% higher, the CAC 40 in France rose 1%, and U.K.’s FTSE 100 climbed 1%. U.S. stocks surged to finish more than 2% higher Thursday, reversing sharp falls, equities in Asia have followed suit and European equities continued the positive tone despite another hot U.S. inflation reading. Investors are clearly pricing in another leap-up in short-term borrowing costs from the Federal Reserve, but the gains in the global stock markets suggest fears that the inflation gains were going to be even more substantial. Back in Europe, sentiment has been boosted by reports the U.K. government could abandon the 43 billion pounds ($48.6 billion) of unfunde...