PARIS (Reuters) – The main European stock markets are expected to be mixed on Friday, with the exception of London, with technology stocks continuing their momentum after Nvidia’s results.
Futures contracts suggest an opening up 0.15% for the Parisian CAC 40 and 0.12% for the Dax in Frankfurt, but directionless for the FTSE in London and the EuroStoxx 50.
The markets are digesting the latest results from Nvidia published on Wednesday in the United States, which brought European indices to records on Thursday.
The technology heavyweight reported better figures than expected by the markets, thanks to sustained demand for its artificial intelligence chips, one of investors’ main bets in 2024.
Few indicators are expected on Friday but the Ifo confidence indicator could liven up trade, while the German economy remains at a standstill, as the PMI indicators showed once again on Thursday.
The revised German GDP reading confirmed that Europe’s largest economy contracted by 0.3% quarter-on-quarter over the final three months of 2023.
Comments from the influential member of the Governing Council of the European Central Bank Isabel Schnabel could also cause the markets to react. She will speak at 09:20 GMT and 13:00 GMT.
In the United States, member of the Board of Governors Christopher Waller insisted on Friday that the Federal Reserve was “in no hurry” to lower its rates.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended sharply higher on Thursday, with the S&P-500 and the Dow Jones setting records, driven by investor appetite for high-growth stocks and technologies following strong results and forecasts from Nvidia, weight heavy on artificial intelligence.
The Dow Jones index gained 1.18%, or 456.87 points, to 39,069.11 points. The broader S&P-500 gained 105.23 points, or 2.11%, to 5,087.03 points. The Nasdaq Composite advanced 460.75 points (2.96%) to 16,041.62 points.
Nvidia jumped 16.4% during the session and guided the S&P-500 and the Dow Jones to records, which exceeded 39,000 points for the first time. The S&P-500 recorded its biggest one-day gain in 13 months.
IN ASIA
The Tokyo Stock Exchange is closed for a public holiday in Japan.
Chinese markets have consolidated after rebounding since the start of the week, encouraged by the latest measures taken by the authorities to stabilize the world’s second largest economy. The Shanghai SSE Composite gained 0.55%, the CSI 300 closed stable. The Hong Kong Hang Seng index gained 0.14%.
RATE
The interest rate markets are calm in the absence of notable data on Friday.
The ten-year Treasury yield nibbles 1 basis point to 4.3367%, while the two-year rate rises 2.1 bps to 4.7348%.
The yield on the German ten-year rose by 1.3 bp to 2.448%, while that of the two-year rate rose by 2.7 bp to 2.9385%.
CHANGES
The foreign exchange markets are wait-and-see.
The dollar is unchanged against a basket of reference currencies, while the euro stagnates at $1.0828 and the pound sterling at $1.2664.
In Asia, the yen eroded by 0.05% to 150.58 yen per dollar, while the Australian dollar gained 0.31% to 0.6573 dollars.
OIL
Crude prices fall after comments from Fed Board of Governors member Christopher Waller.
Brent declined 0.49% to $83.26 per barrel, American light crude (West Texas Intermediate, WTI) lost 0.55% to $78.18.
(Written by Corentin Chappron, edited by Bertrand Boucey)
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