(CercleFinance.com) – The Paris Stock Exchange is expected to be in the red on Friday morning before the publication of several European indicators, after having benefited the day before from remarks by the Federal Reserve opening the door to an imminent end to its monetary tightening cycle.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – due April – lost 45.5 points to 7108.5 points, signaling the start of the session in negative territory.
The Parisian market ended up slightly yesterday (+0.1%), supported by announcements from the Fed, which suggested that the end of its rate hike cycle was near.
Persistent uncertainties about the health of the global banking system and the evolution of the economy are nonetheless keeping investors on their toes.
In this sense, the trend in Europe could quickly change in the morning with the publication of the preliminary results of the surveys of purchasing managers (PMI) on private sector activity in the euro zone for the month of March.
The S&P Global PMI indices for the month of February brought good news overall, showing in particular that the services sector was on the rise.
The publication of the PMIs will be an opportunity to check whether the divergence between the confidence displayed in the tertiary sector and the heaviness in that of the manufacturing industry is confirmed.
Also to follow in the afternoon, orders for durable goods and the ISM manufacturing index in the United States, which will provide more information on the current shape of the world’s largest economy.
US equity markets had managed to regain some color on Thursday, the day after a sharp decline following Fed announcements: the Dow Jones gained 0.2% and the Nasdaq Composite rebounded 1%.
The publication of rather solid economic indicators has also revived hopes of a ‘soft landing’ for growth, considered the ideal scenario from the point of view of the financial markets.
On the bond market, the return of risk appetite is accompanied by a decline in bond yields, that of 10-year Treasuries having fallen to 3.40%, the lowest since February.
The ten-year German Bund yield, a real benchmark for the euro zone, eased to 2.19%.
On the foreign exchange market, the dollar is still hesitant, torn between the benevolent declarations of the Fed and robust economic indicators, the euro confirming its return towards 1.0830 against the greenback.
Oil prices are trying to resume an upward trend as concerns about the banking crisis and the possibility of a recession ease.
Brent resumed timidly 0.3% to 76.1 dollars, while the barrel of American light crude tried to stay above the threshold of 70 dollars, with a gain of 0.4%.
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