by Laetitia Volga
PARIS (Reuters) – Wall Street is expected to rise at the open as European stocks rise for the final session of a week marked by growing concerns over the pace of central bank monetary tightening and slowing economic growth. .
Futures contracts suggest an increase of 0.73% for the Dow Jones, 1.09% for the Standard & Poor’s-500 and 1.64% for the Nasdaq. In Paris, the CAC 40 takes 1.59% at 6,304.91 around 11:25 GMT. In Frankfurt, the Dax rose by 1.47% and in London, the FTSE by 1.62%.
The pan-European FTSEurofirst 300 index gained 1.35%, the Eurozone EuroStoxx 50 was up 1.53% and the Stoxx 600 was up 1.39%.
Federal Reserve Chairman Jerome Powell said on Thursday evening that the fight against inflation will not be painless while reaffirming that he anticipates rate hikes of half a percentage point for the time being. at the institution’s next two monetary policy meetings.
These declarations seem to contribute to the rebound of the world markets which have been battered this week, the investors fearing that the world economy falls into recession under the blow of a brutal tightening of the monetary policies of the central banks in the face of inflation, but also of repercussions of the war in Ukraine and the health crisis in China.
On this last point, the latest news is rather encouraging: Shanghai authorities have indicated that they are aiming for a “zero COVID” situation at the community level in the coming days and will then begin to gradually lift health restrictions.
At the moment, the Stoxx 600 is showing a weekly gain of 0.1%, which would allow it to interrupt a cycle of four consecutive weeks of decline.
Twitter action fell nearly 20% in transactions before the opening of Wall Street, Elon Musk having announced that his plan to buy the social network for 44 billion dollars (42.4 billion euros) was temporarily suspended pending clarification of spam and fake accounts.
VALUES IN EUROPE
The sector compartments are all in the green in Europe, from the Stoxx real estate index (+0.42%) to that of transport and leisure (+2.98%).
All the components of the CAC 40 are progressing. At the top of the Parisian index, Eurofins Scientific, STMicroelectronics and Renault gained from 3.69% to 4.24%.
EXCHANGES On the foreign exchange market, the “dollar index”, which measures the evolution of the greenback against a reference basket, is stabilizing after a jump of more than 1% over the week and a peak of almost two years on Thursday .
The euro is also little changed, at 1.0388 dollars, the day after a low since January 2017 at 1.0352.
The single currency could remain under pressure in the coming weeks and possibly fall below parity, estimates MUFG analyst Lee Hardman, referring in particular to the war in Ukraine and the monetary tightening which promises to be faster in the United States than in the euro zone.
Bitcoin rallies 5% after falling the previous day to its lowest level in 16 months.
RATES Yields on sovereign bonds are rising after the sharp decline of the past few days. That of ten-year Treasuries gained 8.7 basis points to 2.904% and its German equivalent took three points to 0.899%.
OIL
The oil market is up sharply but recovering only a small part of the ground lost in previous sessions and it is heading towards a negative weekly performance after two weeks of progress, a sign that fears for global demand still prevail on the risk linked to the sanctions against Russia.
Brent gained 1.75% to 109.33 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.71% to 107.95 dollars.
(Written by Laetitia Volga, Editing by Kate Entringer)
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