by Claude Chendjou
PARIS (Reuters) – The main European stock markets should rebound on Friday against a backdrop of a lull in the bond market and a rise in technology stocks the day after a close in the red.
Market operators now seem to be on the verge of digesting the announcements from the European Central Bank (ECB) and the publication of mixed macroeconomic indicators in the United States, even if the trend could be influenced by new statistics and quarterly publications of businesses.
According to the first available indications, the Parisian CAC 40 should gain 0.59% at opening. The Dax in Frankfurt could advance 0.58%, while the FTSE 100 in London should gain 0.35%. The EuroStoxx 50 index is expected to increase by 0.67%.
The ECB maintained its key rates at their current levels on Thursday while paving the way for a relaxation of its monetary policy, reaffirming in the process its independence from the American Federal Reserve (Fed).
This did not prevent the bond compartment from ending up sharply, with the yield on the two-year German Bund notably reaching a peak since November, at 3.001%, a sign that expectations of maintaining high rates over a prolonged period are a source of concern.
The strength of the American economy, combined with the persistence of inflationary pressures across the Atlantic, as well as the new surge in oil and other raw materials have fueled the caution of market operators.
Among the macroeconomic indicators of the day, investors will see the final inflation figures in France and Germany before the publication next week of data for the entire euro zone, which should provide more clarity on the evolution of price dynamics.
On the microeconomic side, the major American banks JPMorgan Chase, Citigroup and Wells Fargo are opening the ball of quarterly publications in the United States this Friday.
A WALL STREET
The New York Stock Exchange ended mixed on Thursday, the positive trend having been fueled by new economic data which revived hopes that inflation would continue to slow.
The Dow Jones index fell 0.01%, or 2.43 points, to 38,459.08 points.
The broader Standard & Poor’s 500 gained 38.42 points, or 0.74% to 5,199.06 points.
The Nasdaq Composite advanced 271.84 points (1.68%) to 16,442.198.
The producer price index (PPI) came out weaker than expected, confirming the idea that price growth continues to slow.
In stocks, CarMax fell 9.2% after missing analysts’ estimates for fourth-quarter results.
Biotechnology company Alpine Immune Sciences jumped 36.9% following the announcement of its acquisition by Vertex Pharmaceuticals for around $4.9 billion.
IN ASIA
On the Tokyo Stock Exchange, the Nikkei index advanced 0.27% to 39,550.76 points, supported by technology stocks such as Tokyo Electron (+1.59%), Lasertec (+2.52%) or SoftBank Group ( +0.39%). The broader Topix rose 0.41% to 2,758.11 points as the close approached.
The MSCI index bringing together stocks from Asia and the Pacific (excluding Japan), on the other hand, lost 0.3% but remained on course for a gain of 0.52% over the whole week.
In China, the Shanghai SSE Composite increased by 0.13% but the CSI 300 fell by 0.12%.
EXCHANGES/RATES
The dollar remains firm (+0.11%) against a basket of reference currencies, close to a five-month high.
The euro fell 0.13% to $1.071, while the pound sterling traded at $1.2538 (-0.10%).
The yield on ten-year US Treasury bonds was unchanged on Friday, at 4.5706%, after having climbed the day before to its peak since November 14.
OIL
The threat of oil supplies against a backdrop of worsening tensions in the Middle East is supporting crude prices.
“Geopolitical risks remain high”, underlines ANZ Research in a note, recalling that oil prices have jumped since the start of the year by almost 19%, also supported by improving economic conditions and reductions in the offer by the Organization of the Petroleum Exporting Countries and its allies, united within OPEC+.
Brent rose 0.53% to $90.22 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.72% to $85.63.
(Written by Claude Chendjou)
Copyright © 2024 Thomson Reuters