(Updated with futures, orders to German industry, opening of the bond market in Europe) * The CAC 40 expected to rise by 0.4% * Wall Street ended in the red because of the banks * Apple published sales and profit beat expectations * US jobs report to follow
by Laetitia Volga
PARIS, May 5 (Reuters) – Major European stocks are expected to rebound on Friday after posting losses the day before and speculation that the Federal Reserve’s interest rate hike might pause.
Futures contracts suggest an increase of 0.37% for the Parisian CAC 40 .FCHI , 0.24% for the Dax in Frankfurt .GDAXI , 0.34% for the FTSE in London .FTSE and 0. 35% for the EuroStoxx 50.
All ended down Thursday, from 0.5% to 1.1%, the CAC 40 posting its lowest level in a month. Wall Street fell in the same proportions, shaken by new fears concerning the banks.
The renewed tension in the sector has some players hoping that the Fed’s rate hike cycle may be coming to an end. Markets expect the Fed to opt for a status quo at its next meeting before initiating rate cuts from July, according to the CME’s FedWatch Barometer.
Caution could however limit risk-taking pending the employment statistics in the United States in April, which are due to be published at 12:30 GMT.
The Reuters consensus expects a slowdown in job creation to 180,000, an unemployment rate of 3.6% and an increase of 4.2% over one year in the average hourly wage, unchanged from one month on the month. other.
An easing of the labor market “is the last missing piece of the puzzle needed to open the door to a real Fed pivot [et elle] is falling into place,” Deutsche Bank said in a note.
In Germany, factory orders fell 10.7% in March, a much sharper decline than expected, figures released earlier in the day show.
SEE ALSO: GRAPHS-World tour of the monetary policy of the major central banks
THE VALUES TO FOLLOW: nL8N3717QH
AT WALL STREET
Wall Street ended lower on Thursday as PacWest’s decision to explore strategic options, including a sell-off, heightened fears about the health of U.S. banks.
The Dow Jones Index .DJI fell 0.86%, or 286.5 points, to 33,127.74 points, the S&P-500 .SPX lost 29.53 points, or 0.72%, to 4,061.22 points. and the Nasdaq Composite .IXIC fell 58.93 points (-0.49%) to 11,966.40 points.
PacWest PACW.O fell 51%. Western Alliance Bancorp WAL.N also tumbled (-39%) and its listing was suspended several times despite denying information from the Financial Times that it was considering the possibility of a sale.
Of the 11 sector indices of the S&P-500, nine fell, led by the finance index .SPSY (-1.29%).
Among the biggest banks, JPMorgan JPM.N fell 1.4% and Wells Fargo WFC.N 4.25%.
After the close, Apple AAPL.O posted better-than-expected quarterly results on the back of iPhone sales and notable inroads in India and other markets. The title of the first American company in terms of valuation took 2% in after-hours trading.
The “futures” on indices currently suggest an increase of 0.21% to 0.42% at the opening.
IN ASIA
Hong Kong Stock Exchange .HSI (+0.55%) rises after data released showing China’s services activity grew for the fourth consecutive month in April, while mainland Chinese equities are in the red , weighed down by companies linked to artificial intelligence.
The CSI300 .CSI300 fell by 0.28% and the Shanghai Composite Index .SSEC by 0.48%.
CHANGES
The yen (+0.11%) continues to benefit from its safe haven status with the turbulence in the US banking sector. These weigh on the greenback, down 0.18% against a basket of major currencies. Currency traders are also anticipating Fed rate cuts later this year.
The euro EUR= rises to $1.103, after the European Central Bank hinted on Thursday that monetary tightening was not over.
“Christine Lagarde (the President of the ECB) was ‘hawkish’ during her press conference, but I think the financial markets have not really bought into her view on further rate hikes in the coming months,” said Carol Kong of Commonwealth Bank of Australia.
RATE
The session started in the red for the European bond market, with the ten-year German Bund yield taking nearly three basis points to 2.225%.
OIL
Oil prices are up but are expected to fall sharply over the week in response to concerns about the weakening US economy and Chinese demand.
Brent LCOc1 rose 1.13% to 73.32 dollars a barrel and US light crude (West Texas Intermediate, WTI) CLc1 1.08% to 69.3 dollars.
Over the week, Brent is currently down 8.5% and WTI 10.3%.
PRINCIPAUX INDICATEURS ÉCONOMIQUES À L'AGENDA DU 5 MAI:
PAYS GMT INDICATEUR PÉRIODE CONSENSUS PRÉCÉDENT
FR 06h45 Production industrielle mars -0,3% +1,2%
EZ 09h00 Ventes au détail mars -0,1% -0,8%
- sur un an -3,1% -3,0%
USA 12h30 Créations d'emplois avril 180.000 236.000
Taux de chômage 3,6% 3,5%
Salaire horaire moyen +0,3% +0,3%
- sur un an +4,2% +4,2%
(Édité par Kate Entringer)