European stock markets rebound with gains of 1% despite bad inflation data in the US.

The main European stock markets rebounded this Friday after several days of declines and despite the fact that the PCE inflation data for the United States in April have been worse than expected, while Wall Street it also opened with strong promotions.

London has added 0.74%; Madrid 0.82%; Milan 1.16%; Frankfurt 1.2% and Paris 1.24%. The Euro Stoxx 50 Index, which includes the European companies with the largest capitalization, added 1.59%.

The European session began with a decline but moderated until it was trading flat and the market received data from the personal consumption price index (PCE) -an important reference for the Federal Reserve (Fed)-, at which time it shot up towards the earnings along with the rest of Europe and Wall Street (up 1% at close).

The generalized gains this Friday have made it possible to mitigate the setbacks in the weekly calculation, in which Madrid has left 0.65%; London 1.67%; Frankfurt 1.79%; Paris 2.31% and Milan 2.93%.

In a session empty of references in the eurozone, US PCE inflation picked up in April to 4.4% despite the fact that a decrease was expected, while the core has increased by one tenth, up to 4.7%, when the projection was that it would remain stable.

There has also been a smaller drop than forecast in consumer confidence from the University of Michigan in May in that country, thanks to the fact that twelve-month inflation expectations have been reduced.

The XTB analyst, Darío García, warns that the lack of agreement in the US on the debt ceiling and the rise in underlying PCE inflation in April mean “a huge pressure” for the Federal Reserve (Fed) two weeks away from offering his new monetary policy decision, since it would support new interest rate hikes.

Given this situation, the euro weakened 0.92% during the week compared to the “green ticket”, at US$ 1.0705, and the troy ounce of gold became cheaper 1.77%, at US$ 1,942. In both cases, they returned to the levels of March 20, when the turbulence due to the bankruptcy of banking entities in the United States worsened.

Brent crude, a reference in Europe, rose 2%, to US$ 77 a barrel, in the last five days, while TTF gas has plummeted 17.83%, to 24.65 euros per megawatt ( MWh), so it returned to levels of May 2021.

The interest on the long-term German debt has risen slightly this Friday to 2.535%.

Bitcoin remains stable during the week and was trading this Friday at US$26,826, although during the week it lost the level of US$26,000, levels of mid-March, when it started an upward trend as an alternative value due to the Doubts about US regional banking