German share price index DAX graph is pictured at the stock exchange in Frankfurt
by Laetitia Volga
PARIS (Archyde.com) – The main European stock markets are expected to rise slightly on Friday for the last session before Christmas, but general market sentiment remains fragile in the face of the risks of recession still considered high.
Futures contracts give an increase of 0.15% for the Parisian CAC 40, 0.39% for the Dax in Frankfurt, 0.29% for the FTSE in London and 0.29% for the EuroStoxx 50 .
The London Stock Exchange will only open for half a session and will close at 12:30 GMT.
Stocks fell on Thursday after the release of indicators highlighting the strength of the U.S. economy and labor market, which some investors believe would give the Federal Reserve more leeway in tightening monetary policy, with the risk of a recession.
“European indices should attempt a technical rebound (…) However, investors are increasingly aware that the Fed will not be ‘dovish’ in the coming quarters because of the persistence of the American economic strength. But is- is it really a surprise?”, wrote John Plassard in a note to Mirabaud.
Observers will therefore carefully study at 12:30 GMT the monthly figures for household income and expenditure in the United States, the last major statistics of the year, which include the PCE price index, the most watched by the Fed.
VALUES TO FOLLOW:
A WALL STREET
With uncertainties about the extent of monetary tightening by the Fed, the New York Stock Exchange ended down sharply on Thursday.
The Dow Jones index fell 1.05% to 33,027.49 points, the S&P-500 lost 1.45% to 3,822.39 points and the Nasdaq Composite fell 2.18% to 10,476.12 points.
The gloom was exacerbated by gloomy forecasts from Micron, whose stock lost 3.4%, illustrating the difficulties of the semiconductor sector and dragging the sector index down.
IN ASIA
The Nikkei in Japan lost 1.03% on the session and 4.69% on the week, its biggest weekly decline since mid-June, weighed down by semiconductor stocks in the wake of Wall Street.
Exporters and economically sensitive stocks fell on Fed concerns: Canon, Toyota and Honda fell between 0.63% and 1.36%.
In China, the Shanghai SSE Composite fell 0.3% and the CSI 300 0.2% as the rise in the number of COVID-19 cases took over, in the eyes of investors, the announcement by Beijing. new economic support measures.
RATES/EXCHANGES
Fed rate expectations continue to benefit US bond yields, up to 3.6856% for ten-year securities.
In Europe, the ten-year German Bund yield was virtually unchanged in early trade at 2.359%.
The dollar lost some ground against other major currencies (-0.14%) and the euro, at 1.0612 dollars, took 0.18%.
OIL
The oil market is trending higher with the prospect of lower Russian crude exports following Western sanctions.
Brent gained 0.94% to 81.74 dollars a barrel and American light crude (West Texas Intermediate, WTI) took 1.17% to 78.4 dollars.
(Laetitia Volga, edited by Bertrand Boucey)