European stocks steady themselves after wild week

• Eurostoxx up 0.5%
• Germany's DAX up 0.7%
• France's CAC 40 down 0.2%
• UK's FTSE 100 down 0.2%
• Spain's IBEX up 0.5%
• Italy's FTSE MIB up 0.6%

European equities are getting a bit of respite on the open, with most of the region's main benchmarks edging higher as the trading week draws to a close after a turbulent run. The French index stands out on the downside, with fiscal worries still hanging over it.

For the moment, though, the early advance should not be read into too deeply. Markets have had plenty to chew on this week, led by US inflation data from the CPI and PPI reports that came in above expectations. That is raising fresh questions about the Fed's outlook and about the bond market selloff, even though trading in government bonds has been far calmer in recent sessions.

Even though Treasury yields and the dollar have retreated noticeably, that is no guarantee investors are in the clear. The bigger issue is still that price pressures are proving harder to shake than hoped, leaving central banks with less leeway to aid growth if the economy begins to weaken. That will be a particularly tricky environment for European stocks to move through, with the region's own economic and fiscal problems in the mix.

A calmer performance in US futures is supporting the mood today. A late rebound in tech shares from the previous Wall Street session is spilling over slightly, with S&P 500 futures up 0.1% and Nasdaq futures roughly flat.

Still, I would be wary of calling this a genuine turnaround. European shares are only just managing to steady themselves, and whether they can stay upright is another question.