by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to rise on Friday and European stock markets are moving in the green mid-session, as China’s larger-than-expected drop in one of its main key rates has revived optimism on the markets. markets. Futures on New York indices signal an increase of 0.91% for the Dow Jones, 1.10% for the Standard & Poor’s 500 and 1.43% for the Nasdaq.
In Paris, the CAC 40 advances by 1.47% to 6,364.69 points around 11:05 GMT. In Frankfurt, the Dax takes 1.96% and in London, the FTSE gains 1.92%.
The pan-European FTSEurofirst 300 index rose by 1.56%, the EuroStoxx 50 for the euro zone by 1.78% and the Stoxx 600 by 1.69%.
Over the week as a whole, the Parisian index is practically balanced for the moment, while the Stoxx 600 has gained 0.30%.
The People’s Bank of China (PBOC) cut its five-year prime lending rate, which serves as a benchmark for China’s mortgage market, by 15 basis points to 4.45%, as economists expected a decrease. only five to ten points.
“The reduction in the prime lending rate (TPP) to five years should help revive home sales,” said Julian Evans-Pritchard of Capital Economics in a note.
The unexpected rise in retail sales in the UK in April (+1.4%) also offers support for equities and helps to put aside temporarily the worries linked to inflation in the world, which have weighed on this week the steps.
Producer prices in Germany jumped 33.5% in April year on year, a record high, amid soaring energy costs, official data showed on Friday.
WALL STREET VALUES TO FOLLOW
The specialist in equipment and materials for the semiconductor sector Applied Materials lost 1.8% in market preview after the announcement of results below expectations for the current quarter. At least seven financial analysts lowered their price target.
VALUES IN EUROPE
On the pan-European Stoxx 600, energy (+1.38%), automotive (+3.04%), banks (1.43%) and new technologies (2.17%) are among the sectors most wanted.
Worldline (+3.83%), Renault (+3.98%) and Stellantis (+4%) form the top three of the CAC 40.
The luxury compartment, although exposed to China, does not benefit from Beijing’s stimulus measure, Richemont having published results deemed disappointing and mentioned a risk of a prolonged slowdown in the second largest economy in the world. The owner of the Cartier brand fell by 12.01%, dragging in its wake Hermès, LVMH, or even Hugo Boss, who lost from 0.49% to 1.52%.
Air France-KLM advances by 3.12% following the announcement of discussions with Apollo Global Management with a view to an investment of 500 million euros by the latter.
EDF takes 2.26% despite new delays and additional costs in the construction of the EPR reactors at Hinkley Point, in the United Kingdom, the news being already integrated into the courses according to analysts.
In decline, the Swiss insurer Zurich Insurance is in the red after the announcement of the sale of its activities in Russia.
CHANGES
The dollar is up 0.12% against other major currencies but is expected to post its worst weekly performance since February as a whole, catching its breath after a 10% gain in 14 weeks.
The euro, up slightly by 0.02% at 1.0590 dollars, is heading for a gain of 1.5% for the week as a whole.
The pound sterling, which is trading at 1.24860 dollars, should gain 1.6% over the week, its best performance since the end of 2020.
RATE
The yield on the ten-year German Bund, a benchmark for the European market, takes more than five basis points to 0.988%, while money markets are now pricing in a half-point hike in rates from the European Central Bank in July. He should end the whole week with a gain of four points.
Several ECB officials are due to speak on Friday, including the institution’s chief economist, Philip Lane, while investors await an indicator on consumer confidence in the euro zone at 3:00 p.m. GMT.
In the United States, the yield on ten-year Treasuries is almost stable at 2.8623%.
OIL
Oil prices are not changing much and should show virtual stability throughout the week, with investors torn between the risk of a slowdown in global growth and fears over supply.
The barrel of Brent gained 0.29% to 112.37 dollars a barrel, while that of American light crude (West Texas Intermediate, WTI) fell 0.17% to 112.02 dollars.
NO MAJOR ECONOMIC INDICATOR ON THE AGENDA FOR MAY 20
(Report Claude Chendjou, edited by Marc Angrand)
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