(Reuters) – European stock markets ended a week marked by disappointing economic data down on Friday, with consumer and producer prices in the United States up slightly in July, and as deflation in China increased the pressure on the world’s second largest economy.

In Paris, the CAC 40 lost 1.26% to 7,340.19 points, in Frankfurt, the Dax fell 1.03% and in London, the FTSE 100 lost 1.24%.

The EuroStoxx 50 index lost 1.44%, the FTSEurofirst 300 1.08% and the Stoxx 600 1.11%.

Over the week, the Stoxx 600 dropped 0.04% and the CAC 40 gained 0.34%

US inflation data showed continued disinflation across the Atlantic and supported a halt in Federal Reserve rate hikes, but other deteriorating indicators are cause for concern.

Investor optimism was dampened on Friday by the rise in producer prices in July in the United States against a backdrop of a rebound in the cost of services and by the statements the day before Mary Daly of the San Francisco Fed who believes that additional efforts are required on the rates.

Analysts expect the Federal Reserve to stop raising interest rates as inflation eases and credit conditions tighten. That said, Fed officials stressed that any resurgence in price pressures could lead to further interest rate hikes.

AT WALL STREET

At the time of the close in Europe, Wall Street evolved in scattered order, the Dow Jones taking 0.11%, while the Standard & Poor’s 500 fell by 0.32% and the Nasdaq Composite by 0.86%.

THE INDICATORS OF THE DAY

Another economic indicator of the day, inflation (CPI) slowed down in France in July, to +4.3% over one year after 4.5% in June.

In the United States, the morale of American households has deteriorated very slightly since the beginning of August compared to July.

CHANGES

The concern over rising prices is benefiting the greenback, which has appreciated by 0.22% against a basket of benchmark currencies, and is heading for its fourth consecutive week of gains.

The euro fell 0.23% to 1.0953 dollars and the pound sterling advanced 14% to 1.2693 dollars.

RATE

Stronger-than-expected producer price data pushed bond yields higher.

The ten-year German yield, the benchmark in the euro zone, rose 9.3 basis points to 2.6220%.

The yield on ten-year Treasuries rose 5.7 basis points to 4.1386% and the two-year one, sensitive to interest rates, rose 6.3 basis points to 4.4841%.

OIL

Oil continues to rise, with the International Energy Agency maintaining its crude demand growth forecast for 2023 in its latest monthly report.

Brent rose 0.75% to 87.03 dollars a barrel and US light crude (West Texas Intermediate, WTI) advanced 0.77% to 83.48 dollars.

(Written by Kate Entringer)

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