2023-06-30 10:26:14
PARIS (Archyde.com) – Wall Street is expected to rise at the open on Friday, while European markets also posted gains at midday, despite the resistance of the American economy and inflation in Europe which plead for more restrictive monetary policies.
Futures on New York indices suggest an opening of Wall Street in moderate progress, the Dow Jones advancing by 0.28%, against 0.37% for the Standard & Poor’s 500 and an increase of 0.46% of the Nasdaq. In Paris, the CAC 40 gained 1.17% at 10:50 GMT, while the FTSE in London gained 0.75%. The Dax, in Frankfurt, advances by 1.17%. The pan-European FTSEurofirst 300 index gained 1.08%, against 1.00% for the Stoxx 600. The EuroStoxx 50 rose by 1.07%.
Recent economic indicators on activity in the United States and inflation in Europe have come to reinforce the statements of central bankers, who reiterated this week their commitment to fight against rising prices. “All of this data has fueled the new market narrative that strong growth and persistent inflation will cause central banks to keep rates at restrictive levels for much longer than previously expected,” writes Jim Reid, strategist at Deutsche Bank.
Despite this, the equity markets remain positive at the end of a first half that has already surprised positively, supported in particular by poor Chinese data which suggests significant measures to support the economy.
THE VALUES TO FOLLOW IN WALL STREET
Nike lost 4% before the session, the group having indicated, in a conference on its results, to expect nil or weak growth in its revenues this year against an increase expected by the consensus at 5.8%.
VALUES IN EUROPE
Engie advances by 1.92% thanks to the upward revision of its outlook for this year, its Global Energy Management & Sales (GEMS) branch and a strong performance in the first quarter supporting the group’s performance.
Sodexo, which on Friday raised its revenue growth target for its Benefits and Rewards services division, did not go as far as expected and lost 2.52%.
Austrian bank Bawag (-8.08%) is at the bottom of the Stoxx 600, as short seller Petrus Adviser sent a letter to the European regulator indicating that the bank was “unstable”. 42% and 2.21%.
RATE
Expectations of key interest rates being higher for longer than expected by the markets is supporting bond yields.
The ten-year German Bund rate gained more than a basis point, to 2.4290%, and that of German two-year bonds rose to 3.2620%, still at its highest since March.
US rates are reacting more strongly, with investors positioning themselves ahead of the release of PCE inflation data at 12:30 GMT.
The ten-year Treasuries yield reached its highest level since early March, up more than two basis points, to 3.8779%, while the two-year rate gained four points to 4.9205%, there still its highest level in more than three months.
CHANGES
The possibility of Federal Reserve rates being higher than market expectations is supporting the dollar, which is up 0.13% against a basket of benchmark currencies.
The euro lost 0.18% to 1.0844 dollars, but the pound sterling strengthened by 0.25% to 1.2643 dollars.
PETROLEUM
Oil markets are hesitating, torn between reassuring US economic data on the one hand and signs of weakness in global and Chinese activity on the other.
Brent stagnated at 74.34 dollars a barrel, like American light crude (West Texas Intermediate, WTI) which remained at 69.89 dollars.
(Report Corentin Chapron, edited by Blandine Hénault)
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