European stocks soared and focus shifted to German retail sales after Powell's speech!

European stocks soared and focus shifted to German retail sales after Powell's speech!       European stocks rose; the focus shifted to German retail sales after the Powell announcement.   European stocks rose last Thursday after Fed Chairman Jerome Powell signaled a smaller interest rate hike in late November. But that dampened gains from already weak German retail sales. Global economic activity has been strained for months by sharp interest rate hikes by some top central banks, especially the US Federal Reserve, as it tries to rein in record levels of inflation. However, the latest inflation data suggest that price increases may have peaked, giving the Fed room to rein in monetary tightening. Wednesday's November CPI statement also showed a larger-than-expected decline in the Eurozone. This strengthens the possibility that the European Central Bank will slow down in interest rate hikes later this month, but a 10% annual figure is still five times above the central bank's target. The extent of the economic challenges facing the Eurozone is expected early Thursday, with German retail sales falling 2,8% in October, down 5% year-on-year, with Europe's largest economy expected to shrink in the fourth quarter. Manufacturing PMI data for the euro area as a whole also showed that this important sector continued to contract in November. European stocks soared and focus shifted to German retail sales after Powell's speech! Also, crude oil prices rose on Thursday as many cities in the world's second-largest economy lift regional lock downs even as infections remain high, with the focus on the weekend's OPEC+ meeting in terms of future global crude oil supply. While the Organization of the Petroleum Exporting Countries and its allies met virtually on Sunday, the fact that the delegates did not meet in person is seen as an indication that future production levels will not change. Crude oil prices are nearing this year's lows, with the group still below levels that caused the group to cut production by 2 million barrels per day last month. Crude oil prices rose sharply this week after data showing US inventories decreased significantly more than expected the previous week, and Energy Information Administration data pointing to a drop of more than 12 million barrels.  

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