European stocks are rounding out the week on a solid footing, but the same cannot be said of Wall Street, which has shifted from worrying about CPI to fretting about the Fed. 

The week draws to a close with stronger performances for European markets while Wall Street remains subdued. US eyes are no doubt turning already to next week’s FOMC meeting, since the first sessions of next week continue, by and large, the quiet theme of the past two weeks. Yesterday’s CPI reading provided some brief volatility but the dollar appears to be the winner now that the dust has settled, pushing higher against a basket of currencies while the Dow struggles and the S&P 500 holds close to yesterday’s record high. Inflation was strong, but those expecting a major step-change from the Fed next week are likely to be disappointed. 

The FTSE 100 has been trying to break 7100 for the best part of a month, but it might finally achieve its goal today as it looks to end the week at a one-month high. Brexit concerns seem to have been shrugged off while the strength on the continent suggests that investors continue to prefer the lower valuations on offer in Europe to the pricier ones in the US. 

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