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Stock market: what is moving on the markets before the opening Friday

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The world stock markets were well oriented Friday before the publication of an American indicator of price increases, particularly scrutinized, by the American Central Bank, the Fed.

The clues

On Wall Street, around 7.15 a.m., the futures contracts S&P 500 took 17 points, or 0.41%, to 4,216 points, those of the Dow Jones increased by 180 points, or 0.52%, to 34,624 points and those of the Nasdaq rose 56 points, or 0.41%, to 13,721 points.

In Europe, markets were up at mid-session. In London, the FTSE 100 gained 0.35%, the CAC 40 of Paris appreciated by 0.67% and the DAX of Frankfurt took 0.6%.

Asia also remained optimistic about the recovery. Tokyo finished sharply up 2.1%, despite an unemployment rate that rose to 2.8%. Hong Kong ended up stable (+ 0.04%), while Shanghai recorded a slight decline of 0.22%.

The context

The markets will focus in the afternoon on the PCE inflation index – also called the consumer price deflator – of April in the United States, which is “the preferred indicator of the US Federal Reserve” , the Fed, according to John Plassard, investment manager at Mirabaud.

“It should be noted that the Fed is focusing on the basic PCE price index (…) which excludes the volatile prices of oil, gas and foodstuffs”, he explains, adding that “by excluding these categories, it gives a better overview of the underlying trends in inflation ”.

The Fed takes an inflation target of 2% into account in its monetary policy.

Investors will also see US household income and spending in April and the final May consumer confidence estimate from the University of Michigan.

Still on the indicators side, the French economy remained in the red in the first quarter: the French gross domestic product (GDP) finally fell by 0.1% in the first quarter, against a previous estimate of + 0.4%.

Household consumption fell sharply in April, 8.3% from March, and finally, inflation continued to accelerate in May year on year, reaching 1.4% after 1.2% in April.

Isabel Schnabel, a member of the ECB’s executive board, said in an interview with Reuters that “a premature withdrawal of fiscal or monetary support would be a serious mistake” and adds that the increase in nominal yields is normal and expected in a context of reprise.

On the political level, the 27 Member States of the European Union have all approved the European recovery plan of 672 billion euros, making it possible to conclude the process of ratification of this historic project.

On the oil side

Around 7.15 a.m., the barrel of WTI US dollar rose 0.54% to US $ 67.21 and a barrel of Brent of the North Sea gained 0.37% to US $ 69.72.


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