by Laetitia Volga
PARIS (Reuters) – Wall Street is expected to fall and European stock markets are trading in the red on Friday at mid-session, a caution that can be explained by the imminence of the intervention of the President of the Federal Reserve in Jackson Hole, in the UNITED STATES. Futures contracts show a decline of 0.29% for the Dow Jones, 0.45% for the Standard & Poor’s-500 and 0.59% for the Nasdaq. In Paris, the CAC 40 lost 0.44% to 6,353.18 at 11:05 GMT. In Frankfurt, the Dax dropped 0.45% and in London, the FTSE was stable.
The pan-European FTSEurofirst 300 index is down 0.39%, the Eurozone EuroStoxx 50 is down 0.39% and the Stoxx 600 is down 0.44%.
Jerome Powell will speak at 14:00 GMT and market participants will be looking for signals from his speech about the Fed’s monetary policy stance and the scale of upcoming rate hikes.
Deutsche Bank economists say the central bank chairman “will likely steer his remarks in a ‘hawkish’ direction to ensure the Fed’s inflation-fighting credentials are unchallenged, especially after the July statements [lors de la conférence de presse qui a suivi la réunion du 27 juillet, ndlr] have been interpreted from an accommodating angle”.
Before Jerome Powell’s speech, investors will be looking at US household income and spending at 12:30 GMT. This statistic includes the “core PCE” consumer price index, which the Reuters consensus gives was up 4.7% year on year in July after +4.8% the previous month.
As for the statistics published in Europe, the German consumer morale index, calculated by the GfK institute, deteriorated again to fall to its lowest level as September approaches, while households are anticipating a skyrocketing energy bills. In France, on the other hand, consumer confidence rose unexpectedly in August.
VALUES IN EUROPE
A majority of European sectors are down, but the raw materials sector stands out favorably, with an increase of 1%.
The price of copper on the London market hit an almost two-month high, due to concerns over production with soaring electricity prices.
ArcelorMittal, Anglo American and Rio Tinto gain from 0.82% to 2.26%.
RATES Yields on government bonds in the euro zone are up, that of the ten-year German Bund advances by two basis points to 1.349%, its French equivalent by three points to 1.968%.
Ten-year US Treasuries meanwhile posted a yield of 3.0743%, up five basis points.
FOREIGN EXCHANGES The dollar is on a downward trend pending statements from Jerome Powell: the index which measures its variations against a basket of reference currencies has lost 0.24%.
OIL
Signs of improving fuel demand are supporting oil prices: Brent rose 1.67% to $101 a barrel and US light crude (West Texas Intermediate, WTI) 1.44% to $93.85.
(Laetitia Volga, edited by)
Copyright © 2022 Thomson Reuters