European stock indices were mixed on Friday, with the U.K. benchmark building on its post-Brexit recovery on rate-cut hopes.
The FTSE 100 was recently up 0.27% at 6,521.87, after rising 2.27% on Thursday after Bank of England Governor Mark Carney signalled a summer rate cut was in the pipeline to help offset post-Brexit fallout.
Lackluster data today from Japan, including news that the economy has sunk further into deflation, and from China, where the Caixin purchasing managers’ index fell more than expected and at the fastest pace in four months, spurred hopes of monetary easing in Asia too.
In the Eurozone, the equivalent purchasing managers’ index edged up to 52.8, better than expectations for a stable 52.6 index reading, while the index for Britain jumped much more than expected to 52.1, a rise of two full points. Markit’s data was compiled largely before the outcome of last week’s Brexit vote.