by Claude Chendjou
PARIS (Reuters) – Major European stock markets are expected to fall again on Thursday in the wake of Wall Street’s close the day before, as fears of an economic recession, high inflation and a rapid rise in interest rates resumed. not on the enthusiasm born of the first results of the companies.
Index futures suggest a decline of 0.03% for the CAC 40 in Paris, 0.4% for the Dax in Frankfurt, 0.05% for the FTSE 100 in London and 0.29% for the EuroStoxx 50.
The Fed’s Beige Book, which serves as the basis for the work of the US central bank’s monetary policy committee (FOMC), whose meeting is scheduled for November 1-2, showed that US companies were more pessimistic about the outlook. economic despite a slight increase in activity in recent weeks. The Beige Book also pointed out that price growth remained high, although some slowdown was noted in some sectors.
Money markets are pricing in a 75 basis point hike in US rates after the meeting, which would be the fourth consecutive hike of this magnitude, while a 50 or 75 point hike is also expected in December.
In the euro zone, a Reuters survey shows that the European Central Bank should again raise its rates by three quarters of a point on October 27, to curb inflation which came out in September at 9.9% over one year.
The deterioration in the outlook and expectations of a rise in the cost of credit are weighing on equities, pushing corporate results into the background while a new burst of quarterly publications are expected this Wednesday, those in Europe from Kering, Hermès, L ‘Oréal, Pernod Ricard or even Vivendi and those in the United States of AT&T, American Airlines and Blackstone, among others.
AT WALL STREET
The New York Stock Exchange ended lower on Wednesday, as investors remained cautious at the start of the earnings period.
The Dow Jones index fell 0.33%, or 99.99 points, to 30,423.81 points.
The broader Standard & Poor’s 500 lost 24.82 points, or 0.67% to 3,695.16 points. The Nasdaq Composite fell for its part by -91.89 points (0.85%) to 10,680.508.
IN ASIA
At the Tokyo Stock Exchange, the Nikkei index ended with a loss of 0.91% to 27,008.88 points and the wider Topix fell 0.51% to 1,895.41 points.
In China, the Shanghai SSE Composite is down 0.08% and the CSI 300 is down 0.19% as the Chinese Communist Party (CCP) Congress continues.
RATE
In Asian markets, the yield of 10-year Treasuries, which rose to 4.136% on Wednesday, appeared on Thursday at 4.139%, to a new 14-year high.
In the euro zone, the yield of the ten-year German Bund, which ended Wednesday on a gain of about nine basis points to 2.366%, appears Thursday at 2.412%.
CHANGES
In foreign exchange, the dollar paused (-0.15%) against other major international currencies, while the euro advanced 0.19% to 0.979 dollars.
The pound sterling nibbles 0.03% to 1.12265 dollars.
The Japanese currency approached the symbolic threshold of 150 yen to the dollar on Thursday after hitting a 32-year low of 149.93, posting an eleventh consecutive day of decline.
The Chinese yuan on the “offshore” market fell to a new historic low against the greenback on Thursday, at 7.2794 per dollar.
OIL
Oil prices are still rising, still supported by supply concerns.
Brent rose 0.88% to 93.22 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.51% to 86.84 dollars a barrel.
(Written by Claude Chendjou, edited by Kate Entringer)
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