SLIGHT RISE IN VIEW FOR EUROPEAN EQUITIES
by Laetitia Volga
PARIS (Archyde.com) – The main European stock markets are expected to rise on Thursday pending the opening of the central bankers’ symposium in Jackson Hole in the United States, against a backdrop of uncertainty over the rise in interest rates, the inflation and global growth.
Futures contracts give an increase of 0.41% for the Parisian CAC 40, 0.8% for the Dax in Frankfurt, 0.61% for the FTSE in London and 0.65% for the EuroStoxx 50 .
A traditional end-of-summer meeting, the meeting of central bankers in Jackson Hole, which begins this Thursday, could help give direction to the market.
Friday’s intervention by Federal Reserve Chairman Jerome Powell is the most important event as investors fear that the US central bank will maintain the pace of its rate hike after a succession of statements deemed restrictive by several of its officials over the past few days.
According to the Fedwatch barometer, the markets estimate at 58.5% the probability of another rate hike of 75 basis points in a month, against 41.5% for an increase of half a point.
In the meantime, several economic indicators will animate the session, such as the business climate index in Germany for the month of August and the second estimate of the American gross domestic product in the second quarter.
The German economy grew by 0.1% in the second quarter, while the Archyde.com consensus had expected stagnation, detailed GDP figures published by Destatis show.
The publication at 11:30 GMT of the minutes of the July meeting of the European Central Bank (ECB) will also be followed by observers.
A WALL STREET
The New York Stock Exchange ended up on Wednesday, driven by gains in energy stocks and Intuit (+ 3.6%), after the publication of good results, while investors await the opening of the symposium Fed annual.
The Dow Jones index gained 0.18% to 32,969.23 points, the broader S&P-500 gained 0.29% to 4,140.77 points and the Nasdaq Composite advanced 0.41% to 12,431, 53 dots.
The 11 sector indices of the S&P 500 all rose, led by energy, up 1.2%, ahead of real estate (+0.71%).
Exercise bike maker Peloton jumped 20.35% after announcing it was selling its products on Amazon while department store group Nordstrom fell 19.96% after lowering its revenue forecast and annual profits.
Futures are signaling a rise of 0.75% to 0.9%.
IN ASIA
After five consecutive sessions in the red, the Nikkei in Tokyo took 0.58%, supported by the increase in pharmaceutical stocks, such as Daiichi Sanky (+4.6%).
In China, equities are moving in mixed order despite new signs of support from the government, particularly in favor of the labor market.
The CSI 300 index of large caps in mainland China lost 0.11% and the Shanghai SSE Composite gained 0.14%.
RATES/EXCHANGES
The yield on ten-year Treasuries is virtually unchanged in Asian trading, at around 3.1%. Its German equivalent gains around two basis points in early trading, to 1.373%.
On the foreign exchange market, the dollar yielded 0.51% against a basket of reference currencies after having come close to a peak of nearly twenty years on Tuesday.
The euro took advantage of this to gain 0.49% and return slightly above parity with the American currency, at 1.0014 dollars.
OIL
Oil prices are rising as Saudi Arabia suggested earlier this week that OPEC might consider cutting production.
Multiple sources, however, said any cuts by the cartel and its allies would likely coincide with a return of Iranian supply to the market should the 2015 nuclear deal be revived.
Prices also supported by the shutdown of some facilities at the BP refinery in Whiting, Indiana, following an electrical fire. This refinery with a capacity of 430,000 barrels per day is a major supplier of fuels for the center of the United States and Chicago.
Brent gained 0.78% to 102.01 dollars a barrel and American light crude (West Texas Intermediate, WTI) 0.65% to 95.51 dollars.
(Laetitia Volga, editing by Tangi Salaün and Kate Entringer)