PARIS (Reuters) – Wall Street is expected to be in the red on Friday after the first results from major American banks, while European stock markets continue to gain ground at mid-session, although at a slower pace than in the morning. Futures contracts signal a decline of 0.28% for the Dow Jones, 0.39% for the Standard & Poor’s-500 and 0.52% for the Nasdaq.
The opening trend on Wall Street will be greatly influenced by quarterly results from Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.
The latter two are shown down in pre-market transactions after announcing an increase in provisions for credit risk in the fourth quarter in the face of the economic slowdown.
In Paris, the CAC 40 gained 0.26% to 6,993.76 around 12:20 p.m. GMT, after a peak in session at 7,029.52, the highest since February 16. In Frankfurt, the Dax takes 0.17% and in London, the FTSE gains 0.5%.
The pan-European FTSEurofirst 300 index rose 0.34%, the Eurozone EuroStoxx 50 0.34% and the Stoxx 600 0.32%.
The latter currently shows an increase of 1.65% over the whole week and the CAC 40 of 1.9%.
European equities have benefited since the beginning of the year from an optimistic momentum thanks to the continued slowdown in inflation in the euro zone and the United States, which could allow central banks to review the pace of their monetary tightening .
VALUES IN EUROPE
Biggest drops in the CAC 40, Stellantis (-3.69%) and Renault (-2.43%) are penalized by Tesla’s price drop on some of these models. The American manufacturer dropped more than 4% in pre-market trading on Wall Street.
Air France-KLM takes 4.83% after raising the board of UBS to “buy” and Davy Research to “neutral”.
CHANGES
The yen continues its march forward, moving to its highest level since the end of May against the greenback, still buoyed by speculation that Japan could review its ultra-accommodating monetary policy.
The dollar rallied 0.17% against other major currencies after hitting a seven-month low, as moderating US inflation stoked hopes that the Fed would slow the pace of its interest rate hikes.
The euro is trading at 1.0812 dollars, down 0.31%.
RATE
Yields on government bonds are on the rise again: the ten-year American, which had returned in the morning under 3.42%, rose to 3.4631%. Its German equivalent fell to 2.11%.
OIL
Oil prices are rising and could post a 7% jump for the week as a whole on solid signs of demand growth in China and hopes of central bank moderation in their rate hikes.
Brent gained 0.61% to 84.54 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.7% to 78.94 dollars.
(Laetitia Volga, editing by Kate Entringer)