PARIS (Archyde.com) – The main European stock markets are expected in dispersed order on Friday for a session that should be calm against a backdrop of cautious investors in the face of uncertainties relating to the economy and the monetary policy of the major central banks.
The first indications available give a decline of 0.25% for the Parisian CAC 40, of 0.39% for the Dax in Frankfurt, a gain of 0.13% for the FTSE in London and a loss of 0.27% for the EuroStoxx 50.
After the release of minutes of the Federal Reserve’s July meeting subject to differing interpretations, several US central bank officials spoke on Thursday to reiterate their determination to raise rates to control inflation, even so that the question of the pace of the increase remains to be decided.
James Bullard, the president of the St. Louis Fed, said he currently favors a further 75 basis point rate hike in September given the strength of the economy while his counterpart in San Francisco, Mary Daly, judges “reasonable” both a rise of half a point and three quarters of a point.
Investors may get a clearer idea of the institution’s intentions for the coming months when Chairman Jerome Powell speaks next Friday at 14:00 GMT on the economic outlook at the annual conference of central bankers in Jackson Hole.
In the meantime, the day’s session should remain calm in the absence of a major indicator on the macroeconomic agenda.
A WALL STREET
The New York Stock Exchange ended slightly higher on Thursday, as Cisco’s strong quarterly sales forecast (+5.8%) helped support the technology sector while economic indicators reflected a still relatively strong economy.
The Dow Jones index gained 0.06% to 33,999.04 points, the S&P-500 gained 0.23% to 4,283.74 points and the Nasdaq Composite advanced 0.21% to 12,965.34 points.
Among the indicators released before or during the session, weekly jobless claims fell to 250,000 and the Philadelphia Fed’s economic activity index rebounded more than expected to 6.2? after -12.3 last month.
Lower department store chain Kohl’s lost 7.7% after lowering its full-year revenue and profit forecast.
Futures are currently signaling a decline of 0.16% to 0.3%.
IN ASIA
The Nikkei on the Tokyo Stock Exchange (-0.04%) stabilized as the close approached, the support provided at the start of the session by the decline in the yen having faded over the hours.
Variations are also limited in China where concerns about COVID-19 and the slow economic recovery persist. The CSI 300 index of large caps in mainland China lost 0.1% and the Shanghai SSE Composite was almost stable.
RATES/EXCHANGES
The yield on ten-year Treasuries gained nearly three basis points to 2.9079% and the dollar hit a one-month high against a basket of benchmark currencies (+0.19%) as officials Fed officials continued to stress the need for further interest rate hikes.
Over the week, the “dollar index” has so far gained almost 2%.
The euro fell to $1.0077 and is heading for a weekly decline of 1.8%.
“It is difficult to attribute the weakness in European currencies to specific news, although further weakness in (global) economic fundamentals has been evident for weeks,” said Ray Attrill, head of currency strategy at National. Australia Bank.
OIL
After two consecutive sessions of increases, oil prices are starting to fall again on concerns that the slowdown in the global economy could dampen demand.
Brent lost 0.43% to 96.17 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.42% to 90.12 dollars.
(Laetitia Volga, editing by Marc Angrand)