European stocks fell on Friday but were on track for their biggest weekly percentage gain in more than three months, driven by hopes that the Federal Reserve will soon stop raising interest rates as inflation eases.
The European Stoxx 600 index fell 0.2 percent but rose 2.9 percent this week, posting its best weekly performance since late March and on track to recoup almost all of last week’s losses.
Data on consumer and producer prices in the United States released earlier this week fueled speculation that the economy has entered a phase of declining inflation and that the Federal Reserve may end monetary tightening after this July.
The Stoxx 600 was under pressure today as telecoms companies fell 0.6 percent, including Nokia, whose shares fell 5.3 percent after it cut expectations for full-year results, and Swedish rival Ericsson fell 4.2 percent. It fell 62 percent in the second quarter, and shares of mining companies, the biggest gainers this week, fell 0.6 percent.

Nikkei falls ahead of Bank of Japan meeting

Japan’s Nikkei index turned cautiously lower ahead of the Bank of Japan’s monetary policy meeting, while the yen’s rise against the dollar prompted investors to sell stocks.
The Japanese index fell 0.09 percent to 32,391.26 points, retreating from a 1 percent gain in the previous session and the index was flat for the week.
The broader TOPICS index also reversed course, falling 0.17 percent to 2,239.10 points, and lost 0.7 percent on the week.
The Bank of Japan will hold its monetary policy meeting on July 27-28.

10-year Japanese government bonds rose to their highest in four and a half months on Friday on speculation that the central bank will reverse its ultra-loose policy.
Meanwhile, the yen hit a two-month session high of 137.245, on track to post its best performance in a week against the dollar since January. 15 months.
Shares of Fast Retailing, the owner of the Uniqlo brand, reversed the trend and fell 2.09 percent, the biggest drag on the Nikkei index.

Shares were expected to consolidate its gains on Thursday, after the company reported third-quarter earnings and raised its full-year forecasts. Shares of SoftBank Group lost 2 percent.

Gold is set to post its best weekly gain yet

In precious metals markets, gold prices were on course for their biggest weekly gain since April, after nearing their highest level in a month as market expectations of a U.S. interest rate hike eased, sending the dollar to its lowest level. More than a year.
Gold was little changed at $1959.81 an ounce in spot trades, up 1.9 percent on the week. US gold futures were little changed at $1,964.00.
The dollar index hit its lowest level since April 2022, as overseas buyers weighed in on gold prices.
“Gold is likely to expand somewhat,” said Matt Simpson, senior market analyst at CitiIndex, adding that “the next key levels could be $1,985 to $2,000.”
As for other precious metals, silver fell 0.2 percent to $24.8091 an ounce in spot trades, but was on course for its biggest weekly gain since last March.
Platinum fell 0.4 percent to $969.08 and palladium lost 1.1 percent to $1,280.62, but was on course for a second straight week of gains.