Investors are analysing new U.K. growth figures as European stock markets are anticipated to begin lower on Friday.

Investors are analysing new U.K. growth figures as European stock markets are anticipated to begin lower on Friday. Meanwhile, the spike in U.S. inflation hasn't done much to change investors' outlook.

Strong gains were made by the major European indexes on Thursday, but as the week draws to a close and investors assess the most recent U.S. inflation statistics, some of these gains are expected to be given back.

The U.S. CPI increased as anticipated in July compared to the previous month, which raised hopes that the Federal Reserve would leave interest rates steady in September. However, it continued to be far higher than the central bank's medium-term objective, suggesting that rate reductions are still some time away.

The Bank of England is expected to continue tightening monetary policy despite the Fed perhaps pausing next month and UK inflation being among the highest in the developed world.

Nevertheless, the UK's GDP increased in the second quarter by 0.2% compared to the first and by 0.4% compared to the previous year, with a 0.5% increase in June alone.

The producer price index and consumer confidence statistics will be presented to Fed officials later in the US as yet another inflation indicator.

With traders attempting to process U.S. inflation statistics, worries about a faltering economic recovery in China, the world's largest oil importer, as well as upbeat OPEC demand estimates, oil prices were steady on Friday.

The dollar increased following the announcement of the U.S. CPI on Thursday, which impacted the oil market by increasing the price of the commodity for consumers using other currencies.

The OPEC confirmed on Thursday that it still anticipates that global oil demand will rise by 2.25 million barrels per day in 2024, compared to growth of 2.44 million barrels per day this year. This offset growing concerns about China's economy that were also weighing on oil markets.

(Sources: investing.com, reuters.com)