2023-06-23 12:41:30
by CORENTIN CHAPPRON
PARIS (Archyde.com) – Wall Street is expected to be lower at the opening on Friday, while the main European stock markets fell at midday, following activity indicators below expectations which provoked a downward movement towards the assets ” safe haven”, such as sovereign bonds.
Futures on New York indices suggest an opening down 0.29% for the Dow Jones, 0.41% for the Standard & Poor’s 500 and 0.51% for the Nasdaq.
In Paris, the CAC 40 fell 0.19% to 7,189.57 points at 11:30 GMT. The FTSE in London lost 0.74% and the Dax in Frankfurt dropped 0.72%, driven by the fall of Siemens Energy.
The pan-European FTSEurofirst 300 index and the Stoxx 600 are virtually unchanged while the EuroStoxx 50 is down 0.39%.
The various PMI indicators published Friday morning in the euro zone and the United Kingdom confirm the transmission of the tightening of monetary policy to the economy, with growth in the private sector almost at a standstill in the European bloc in May and a slowdown more scored than expected across the Channel.
These data cast a shadow over the economic outlook, which has already been weakened by the persistence of inflation, which might force central banks to keep their rates at high levels for longer than the markets are anticipating.
“Leading indicators point in the same direction and confirm the general economic slowdown,” notes Christophe Boucher, chief investment officer of ABN AMRO Investment Solutions.
US PMI indicators are due for 13:30 GMT.
RATE
European yields plummeted following the publication of the PMI indices which confirmed the slowdown in activity, which benefited the assets considered to be the safest.
The German two-year yield lost ten basis points, to less than 3.17%, and the ten-year rate lost twelve points, to fall back to 2.361%.
In the United States, yields also fell, pending the publication of PMI indicators later in the day: the ten-year Treasuries rate fell by almost six basis points, to 3.7405%.
THE VALUES TO FOLLOW IN WALL STREET [L8N38F1WU]
3M gained 4.2% in the forefront, the group having announced that it had reached an agreement of 10.3 billion dollars (9.49 billion euros) to end the lawsuits linked to pollution with “eternal pollutants”, or PFAS.
VALUES IN EUROPE
Siemens Energy plummets 33.08% to the bottom of the Stoxx 600 as the group warned on Friday that the impact of quality issues at its Siemens Gamesa division, which makes wind turbines, would be felt for years and was not yet quantifiable.
The action SES Imagotag, down 52.04%, continues its tumble that began yesterday with the publication of a note by Gotham City Research deeming the electronic labeling group’s financial accounts to be misleading.
GSK leads the Stoxx 600 (+6.21%), the pharmaceutical group having closed a first trial in the United States once morest its drug Zantac, accused of being carcinogenic.
The Stoxx 600 is driven by defensive sectors amid growth concerns, with the three best performing sectors being Healthcare, up 0.69%, Consumer Staples (+0.29%) and Consumer Staples (+0.29%). public service equipment (+0.17%).
CHANGES
The dollar benefited from the risk aversion movement and strengthened by 0.62% once morest a basket of benchmark currencies. that the pound sterling erodes more modestly, down 0.14% to 1.2727 dollar.
PETROLEUM
Fears regarding activity are driving crude oil down, despite the surprise drop in oil volumes stored in the United States, a signal of tight supply.
Brent lost 1.40% to 73.10 dollars a barrel and US light crude (West Texas Intermediate, WTI) fell 1.61% to 68.39 dollars.
(Report Corentin Chapron, edited by Blandine Hénault)
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