View of the Palais Brongniart, the former Paris Stock Exchange
PARIS (Archyde.com) – The main European stock markets are expected to rise on Thursday with the prospect of a rebound on Wall Street the day after a limited decline, pending new indications on the economic situation in the United States.
Futures contracts on indices suggest an increase of 0.94% for the CAC 40 in Paris, 0.97% for the Dax in Frankfurt, 0.59% for the FTSE 100 in London and 1.02% for the EuroStoxx 50.
Questions about the economic slowdown and the scale of future rate hikes remain at the heart of investors’ decisions, but Wednesday’s session showed that their mood remained volatile, the optimism of the beginning of the week giving way to the concern after an ISM services index in the United States slightly above the consensus.
Statements by Mary Daly, Chair of the San Francisco Federal Reserve, underscoring the central bank’s determination to bring down inflation also weighed on the trend.
After the close on Wall Street, Raphael Bostic, his Atlanta counterpart, said the fight against inflation was “still in its infancy”.
While waiting for the monthly report on employment in the United States on Friday, the upcoming session will be animated among other things by the statistics of retail sales in the euro zone (at 09:00 GMT), the publication of the minutes of the October meeting from the European Central Bank (at 11:30 GMT) and the figures for unemployment claims in the United States (at 12:30 GMT).
In Germany, orders to industry fell by 2.4% in August, a decline more marked than expected.
A WALL STREET
The New York Stock Exchange ended in the red on Wednesday, the risks of recession and the prospect of a further rise in interest rates having regained the upper hand after a start to the week marked by a marked increase in risk appetite.
However, the decline eased at the end of the session thanks to cheap buying, with the three indices even briefly moving into positive territory.
The Dow Jones index fell 0.14%, or 42.45 points, to 30,273.87 points, the Standard & Poor’s 500 lost 7.65 points, or 0.20%, to 3,783.28 and the Nasdaq Composite fell 27.77 points (-0.25%) to 11,148.64.
Twitter (-1.30%) on the other hand marked time after gaining 22% on Tuesday following the relaunch of the Elon Musk buyout offer for 44 billion dollars. Tesla, led by the billionaire, lost 3.45%.
Index futures so far are signaling an opening up 0.3% for the Dow Jones, 0.32% for the Standard & Poor’s 500 and 0.44% for the Nasdaq.
IN ASIA
In Tokyo, the Nikkei index ended up 0.7%, its fourth session of rebound in a row, and posted its best closing since September 20, driven by energy and semiconductor stocks. .
Markets remain closed in China and will not reopen until Monday.
RATE
Yields on Treasuries are near flat in Asian trading after their rebound on Wednesday, aided by the day’s US indicators.
The ten-year, which recovered nearly 14 basis points over the session, is displayed at 3.7491% and the two-year at 4.1459%.
In Europe, the ten-year returned to 2.022% in early trading, erasing a small part of its rise the day before.
CHANGES
Hesitant since the start of the day, the dollar is currently on a downward trend against the other major currencies (-0.14%) after having benefited on Wednesday from the American economic indicators published on Wednesday and from the remarks of the leaders of the Fed.
It is moving about 4% below the 20-year high reached last week.
The yen is practically stable but the euro regains ground against the greenback (+0.25%) at 0.9907.
The pound sterling (-0.03%) did not suffer from Fitch’s decision to lower its outlook on the UK’s sovereign rating from “stable” to “negative” five days after a similar decision by S&P Global.
OIL
Oil prices are stabilizing after three straight bull sessions that saw Brent crude recover to mid-September levels after OPEC+ countries agreed to cut overall output by around two million barrels per day from next month.
Brent lost 0.06% to 93.31 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.14% to 87.64 dollars.
(Writing by Marc Angrand, editing by Kate Entringer)