LONDON, July 22 (Reuters) – Global stocks edged higher on Friday, pricing in a sixth day of gains, as weak data on eurozone economic activity hit the euro and weighed on the bloc’s debt .

The MSCI World Index (.MIWD00000PUS), its broadest gauge of stock markets, rose 0.1% at the start of European trading, with the Euro STOXX 50 Index (.STOXX50E) rising 0.2%.

Overnight, MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) rose 0.1%, en route to its biggest weekly gain in about two months.

U.S. stock futures pointed to a weaker open after weak overnight earnings from tech company Snap Inc raised alarm bells among investors ahead of Twitter Inc’s (TWTR.N) earnings later on Friday. .

S&P 500 futures were last down around 0.3%, with Nasdaq futures down 0.5%.

Despite Russian gas returning to Europe, for now, and strong earnings reports in the region, political tensions in Italy have dampened sentiment, as have prospects for further central bank action. on both sides of the Atlantic in a context of rising inflation.

The European Central Bank on Thursday raised interest rates 50 basis points higher than expected to zero percent, its first hike in 11 years, and ended a negative interest rate policy in place since 2014. . read more

Mark Haefele, chief investment officer at UBS Global Wealth Management, said he remained cautious about the outlook for stocks.

“The 50 basis point hike, bigger than expected, was received positively by markets, but we remain cautious on European equities as the ECB takes a step between fighting inflation and avoiding recession. .”

After initially gaining, the euro retreated against the dollar and fell further on Friday as traders assessed the likely path of rates. It extended losses after weak data on trading activity hit traders’ screens.

Eurozone business activity contracted unexpectedly this month, with businesses continuing to report rising costs as inflation bites, hitting consumer demand and weighing on the outlook, according to a survey. Read more

The euro was last down 0.7% against the dollar at $1.0158, but remains up around 0.6% on the week, on course for its biggest gain in two months.

Yields on German 10-year debt were also hit by weak PMI data, and last stood at 1.06%.

“July’s flash PMIs suggest the eurozone is on the brink of recession due to collapsing demand and rising costs. At the same time, inflationary pressures remain intense,” said Andrew Kenningham, Chief Economist for Europe at Capital Economics.

Elsewhere in the currency markets, the dollar rose 0.5% against a basket of major peers, supported by euro weakness, but remained on track for its biggest weekly decline since late May. , as recent weak economic data tempered bets on the size of an expected market. Federal Reserve interest rate hike.

The US Federal Reserve is meeting to set interest rates next week and expectations of a 100 basis point (bp) hike have faded in favor of pricing for a 75bp move.

Major cryptocurrency Bitcoin last rose 1.5% to $23,457 and was on course for its best week since last October.

Across commodities, oil prices extended early losses, with Brent futures down 0.7% and U.S. WTI crude futures down about 1% . Gold edged higher to trade 0.4% higher at $1,724.3 an ounce.

Additional reporting by Sam Byford in Tokyo and Yoruk Bahceli and Samuel Indyk in London; Editing by Sonali Desai, Lincoln Feast, Edmund Klamann and Kim Coghill

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