By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets climbed on
Friday, partly recovering from a Ukraine-spurred selloff the prior
day, with investors waiting for the closely watched euro-zone
inflation figures.
Economists expect consumer-price growth in the currency to have
slipped to 0.3% in August, which would be a step closer to
deflation. A weak reading could add more pressure on the European
Central Bank to either cut interest rates or launch a
quantitative-easing program at its monetary-policy meeting next
week. Read: Why you should care about Friday's euro-zone inflation
data
ECB President Mario Draghi spurred hopes for more easing in the
euro zone last Friday when he at the Jackson Hole meeting struck a
dovish tone and hinted at a full-on QE program in efforts to fight
of the threat of deflation.
The data come out at 10 a.m. London time, or 5 a.m. Eastern
Time. At the same time, July unemployment data for the currency
bloc are also due.
Market reaction: Ahead of the releases, the Stoxx Europe 600
index climbed 0.3% to 342.11. The pan-European benchmark was on
track for a 1.8% advance in August, which would mark the first
monthly gain since May.
Germany's DAX 30 index gained 0.3% to 9,489.13, while France's
CAC 40 index was up 0.2% at 4,376.39.
The U.K.'s FTSE 100 index added 0.1% to 6,813.63, with Tesco PLC
capping gains for the benchmark after a profit warning.
The euro (EURUSD) traded at $1.3171 ahead of the inflation
data.
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