by CORENTIN CHAPPRON
PARIS (Reuters) – The main European stock markets are expected to rise slightly on Friday at the opening, in a context of caution after results and mixed American indicators on Thursday, and before the publication of new data on the labor markets in the United States. United.
The first indications available indicate that the Parisian CAC 40 would advance by 0.43% at the opening. Futures on the FTSE in London suggest a rise of 0.48%, compared to 0.46% for the Dax in Frankfurt and 0.58% for the EuroStoxx 50.
European indices are digesting the results published on both sides of the Atlantic yesterday, which continue to send a contradictory picture of activity: while Amazon’s results were above expectations, Apple said it expected a decline of its turnover this year.
Moreover, the ISM indicator suggests that manufacturing activity is in recession in the United States, while services are slowing down, a reading contradicted by the ADP private employment figures, published earlier in the week, which signal strong resistance from the US labor market.
Investors will therefore carefully follow the official monthly employment report published at 12:30 GMT by the Labor Department, an indicator considered more reliable than ADP data and which guides the Federal Reserve in its reading of American economic conditions.
Figures that surprise on the upside would be bad news for markets, as they would increase the risk that the Fed will raise rates again to break employment momentum and prevent the development of price-wage loops.
VALUES TO FOLLOW:
AT WALL STREET
Wall Street ended lower on Thursday, under pressure from rising bond yields and ahead of earnings releases from Apple and Amazon.
The Dow Jones index fell 0.19% to 35,215.89 points, the broader S&P 500 lost 0.25% to 4,501.89 points and the Nasdaq Composite fell 0.10% to 13,959. .72 points.
IN ASIA
In Tokyo, the Japanese indices closed higher after falling significantly over the previous two sessions.
The Nikkei rose 0.10% to 32,192.75 points, while the Topix gained 0.28% to 2,274.63 points.
In values, Nintendo advanced 0.28% after reporting an operating profit up 82% year on year in the first quarter.
Market sentiment is improving in China, where investors are now betting on more measures to support the economy after a local central bank press conference. The Shanghai SSE Composite advanced by 0.67%, the CSI 300 by 0.97% and the Hong Kong Hang Seng index by 1.04%.
CHANGES
Traders remain cautious ahead of the release of the official monthly US jobs report, as lackluster activity data weighs on the greenback.
The dollar was down 0.13% against a basket of benchmark currencies, with the euro advancing 0.08% to $1.0953.
The pound sterling remains at 1.2716 dollar, after the increase, Thursday, the key rate of the Bank of England.
In Asia, the yen strengthened 0.08% to 142.43 yen per dollar, while the Australian dollar advanced 0.21% to 0.6566 dollars.
RATE
The US bond markets remain wait-and-see before the release of US employment data.
The 10-year Treasury yield stagnated at 4.1818%, while the 2-year rate climbed 1.7bp to 4.9127%.
Yields in Europe rose after German industrial orders rose sharply. The German ten-year yield gained 3.4 bp to 2.588%, while that of the two-year rate rose by 5.7 bp to 3.205%.
OIL
Oil is up slightly, markets worried about the latest ISM data which raise fears of a slowdown in US demand as the production cuts decided by Saudi Arabia and Russia in August materialize.
Brent rose 0.14% to 85.26 dollars a barrel, US light crude (West Texas Intermediate, WTI) rising 0.22% to 81.73 dollars.
(edited by Blandine Hénault)
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