Rise in sight in Europe, Wall Street has limited its decline – 06/10/2022 at 08:45


View of the Palais Brongniart, the former Paris Stock Exchange

PARIS (Reuters) – Major European stock exchanges are expected to rise on Thursday with the prospect of a rebound on Wall Street the day after a modest decline, pending new indications on the economic situation in the United States.

Index futures contracts 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 magnitude of future rate hikes remain at the heart of investors’ decisions, but Wednesday’s session showed that their mood remained unstable as the optimism from the beginning of the week gave way to worries later. an ISM services index in the United States slightly above consensus.

The trend was also affected by statements by Mary Daly, chairman of the San Francisco Federal Reserve, which underline the central bank’s determination to reduce inflation.

After Wall Street closed, Raphael Bostic, his Atlanta counterpart, said the fight against inflation was “still in its infancy.”

Pending the monthly US employment report on Friday, the next session will be enlivened among other things by retail sales statistics in the euro zone (at 09:00 GMT), from the publication of the minutes of the October Central Bank meeting. European Union (at 11:30 GMT) and United States Unemployment Claims figures (at 12:30 GMT).

In Germany, industrial orders fell 2.4% in August, a steeper-than-expected decline.

A WALL STREET

The New York Stock Exchange closed in the red on Wednesday, recession risks and the prospect of a further rise in interest rates 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 low-cost buying, with the three indices also 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 fell 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%) instead fell behind after gaining 22% on Tuesday after the relaunch of Elon Musk’s bid for $ 44 billion. Tesla, led by the billionaire, lost 3.45%.

Index futures so far have signaled an upward opening of 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 closed 0.7% higher, its fourth consecutive rebound session, and recorded its best close since September 20, led by energy and semiconductor stocks.

Markets remain closed in China and will not reopen until Monday.

RATE IT

Treasury yields are nearly flat in Asian trade after bouncing back on Wednesday, helped by US indicators for the day.

The 10-year, which recovered nearly 14 basis points during the session, is displayed at 3.7491% and the two-year at 4.1459%.

In Europe, the 10-year rate returned to 2.022% in early trading, canceling a small part of the rise from the day before.

CHANGES

Hesitant since the start of the day, the dollar is currently trending down against other major currencies (-0.14%) after benefiting Wednesday from US economic indicators released Wednesday and comments from Fed leaders.

It is moving around 4% below the 20-year high reached last week.

The yen is practically stable but the euro is recovering ground against the greenback (+ 0.25%) at 0.9907.

The British pound (-0.03%) was not affected by Fitch’s decision to lower the outlook on the UK sovereign rating from “stable” to “negative” five days after a similar decision by S&P Global.

OIL

Oil prices are stabilizing after three consecutive bullish sessions that saw Brent crude recover to mid-September levels after OPEC + countries agreed to cut overall production 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)

Leave a Reply

Your email address will not be published. Required fields are marked *