May Empire State Manufacturing Index Rises More Than Expected to Highest in Over Four Years

May Empire State Regional Manufacturing Index 19.6 Vs. 7.2 Expected, 11.0 Prior

Oil, Interest Rates Damp European Bourses Midday

European bourses tracked lower midday Friday as traders monitored rising oil prices and interest rates, tech-sector sell-offs overnight in Asia, and UK political turmoil.UK equities came under pressure on media reports of an expected Labor motion to remove Keir Starmer as the nation's prime minister, and a possible challenge by party rival Andy Burnham, who is considered further to the left on the political spectrum.Property and tech shares stocks led broad losses on continental trading floors, although food stocks bucked trends to gain.Yields on benchmark 10-year German bonds were higher, near 3.1%, the highest since 2011.Front-month North Sea Brent crude-oil futures were up 2.3% at $108.14 a barrel.Investors also eyed Wall Street futures flashing red, and lower closes overnight on Asian exchanges, including a 6% decline on Seoul's KOSPI index.The pan-continental Stoxx Europe 600 Index was off 1.1% mid-session.The Stoxx Europe 600 Technology Index was down 2%, and the Stoxx 600 Banks Index lost 1.6%.The Stoxx Europe 600 Oil and Gas Index eased 0.4%, but the Stoxx 600 Europe Food and Beverage Index gained 0.5%.The REITE, a European REIT index, fell 2.1%.On the national market indexes, Germany's DAX was down 1.5%, and the FTSE 100 in London lost 1.5%. The CAC 40 in Paris was down 1.3%, and Spain's IBEX 35 eased 1.1%.Yields on benchmark 10-year German bonds were higher, near 3.1%, the highest since 2011.Front-month North Sea Brent crude-oil futures were up 2.3% at $108.14 a barrel.The Euro Stoxx 50 volatility index was up 6.5% at 22.56, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

US Dollar Rises Early Friday Ahead of Empire Manufacturing, Industrial Production

The US dollar rose against its major trading partners early Friday ahead of the New York Federal Reserve's Empire State manufacturing reading for May at 8:30 am ET and industrial production data for April at 9:15 am ET.The St. Louis Fed is expected to update its GDP nowcast estimate for Q1 around midday.A quick summary of foreign exchange activity heading into Friday:EUR/USD fell to 1.1646 from 1.1671 at the Thursday US close and 1.1707 at the same time Thursday morning. Eurozone reserve assets declined in April, according to data released earlier Friday. The next European Central Bank meeting is scheduled for June 11.GBP/USD fell to 1.3379 from 1.3399 at the Thursday US close and 1.3515 at the same time Thursday morning. There are no UK data on Friday's schedule. The next Bank of England meeting is scheduled for June 18.USD/JPY rose to 158.4510 from 158.3673 at the Thursday US close and 157.9382 at the same time Thursday morning. Japanese producer prices and machine tool orders surged in April while Japanese consumer sentiment ticked up in May, according to data released overnight. The next Bank of Japan meeting is scheduled for June 15-16.USD/CAD rose to 1.3743 from 1.3724 at the Thursday US close and 1.3718 at the same time Thursday morning. Canadian housing starts data for April are due to be released at 8:15 am ET, followed by Canadian foreign securities purchases and manufacturing sales, all for March, are scheduled to be released at 8:30 am ET. The next Bank of Canada meeting is scheduled for June 10.