European stocks ended Friday with a mixed performance. Early optimism faded as investors waited for the delayed release of the Federal Reserve’s preferred inflation data, an important precursor to next week’s policy meeting.
Germany’s DAX rose 0.7%, while France’s CAC 40 slipped 0.1%. The U.K.’s FTSE 100 also moved lower, falling 0.5%.
U.S. inflation update ahead of Fed decision
The Federal Reserve meets next week, and expectations for rate cuts remain strong. Global sentiment stayed supported even after U.S. jobless claims dropped to a three-year low on Thursday. Economists noted that holiday effects from Thanksgiving likely influenced the numbers.
Concerns about the strength of the U.S. labor market remain central for Fed officials. This follows a surprise drop in November payrolls reported by the ADP employment survey.
On Friday, the U.S. Commerce Department reported that its delayed Personal Consumption Expenditures (PCE) price index rose to 2.8% in the 12 months to September, slightly above August’s reading of 2.7% and in line with forecasts.
Month over month, the PCE index increased 0.3%, matching August’s pace and market expectations.
Core PCE, which excludes food and energy, climbed 0.2% on the month and remained consistent with August. On an annual basis, core inflation eased slightly to 2.8% from 2.9%, coming in just below expectations.
German industrial orders beat forecasts
In Europe, German industrial orders surpassed expectations in October. Orders increased 1.5% from the previous month, well above the forecast of 0.4%, according to the federal statistics office.
Despite the stronger data, the German Economic Institute (IW) expects the country’s recovery to stay subdued next year. Weak export demand and slowing global trade continue to weigh on growth.
The IW expects German GDP to rise only 0.1% this year after two years of contraction. Growth is projected to improve to 0.9% in 2026.
The eurozone’s final third-quarter GDP figures are also due later on Friday. Economists expect confirmation of 1.4% annual growth and a quarterly increase of 0.2%.
The European Central Bank will meet later this month. Unlike the Federal Reserve, the ECB is widely expected to keep interest rates unchanged at its final meeting of the year.
Swiss Re forecasts higher profits for 2026
Swiss Re announced that it expects higher net profit in 2026 and plans to launch a $500 million share buyback. The company forecasts earnings of $4.5 billion in 2026, slightly above the profit it expects to report for this year.
Oil prices rise on Russian supply concerns
Oil prices held steady on Friday, maintaining the previous session’s gains. Market sentiment improved as expectations for a Fed rate cut strengthened and diplomatic efforts to resolve the Ukraine war remained stalled.
Brent crude rose 1% to $63.88 per barrel, while West Texas Intermediate gained 0.9% to $60.23 per barrel.
Both benchmarks climbed nearly 1% on Thursday. Brent is set to end the week mostly unchanged, while WTI is on track for a 1.5% weekly rise—its second straight weekly gain.
Ongoing tensions between the United States and Russia have reduced hopes for progress in ending the conflict. This has kept sanctions in place and preserved a risk premium in global oil markets.
