by Laetitia Volga
PARIS (Reuters) – Wall Street is expected to be green and European stocks rose mid-session on Friday, with dovish statements from a US Federal Reserve official and renewed confidence in China’s economic recovery providing a boost. boost to actions to end the week. New York index ‘futures’ are signaling an open up 0.3% to 0.4% on Wall Street, which rebounded on Thursday on comments from Atlanta Fed President Raphael Bostic in favor of a steady increase in US rates by a quarter point.
He also believes that the Fed may be able to suspend its rate hikes in the summer.
Raphael Bostic is not taking part in the votes of the Fed’s Monetary Policy Committee this year, however, his remarks seem to calm the markets for the moment, preoccupied for weeks by the duration and extent of the rise in US rates. In Paris, the CAC 40 gained 0.82% to 7,343.98 around 12:15 GMT. In Frankfurt, the Dax takes 1.1% and in London, the FTSE 0.14%.
The pan-European FTSEurofirst 300 index advanced by 0.68%, the EuroStoxx 50 of the euro zone by 0.97% and the Stoxx 600 by 0.76%.
In terms of indicators, investors took notice of the improvement in the activity of service companies in the euro zone and China.
“The Chinese recovery is significant, the end of COVID and a surge in Chinese consumer demand could be all it takes to pull the global economy out of its slump,” Neil Wilson told markets.com. WALL STREET VALUES TO FOLLOW
VALUES IN EUROPE
The reopening of China, which boosts the outlook for demand, provides support for mining stocks (+2.48%): Arcelormittal thus finds itself at the top of the CAC 40 with a gain of 2.62% and in London, Anglo American , Rio Tinto and Glencore take from 2.24% to 3.09%.
Stellantis, thanks to a change of advice from RBC to “outperform”, gains 1.82%.
CGG, which specializes in geophysical services and equipment, takes 7.83% and the German airline Lufthansa climbs 6.49% after both returning to profit in 2022.
The music major UMG (-3.72%) is the red lantern of the Stoxx 600, its 2022 gross operating surplus having been established below analysts’ estimates.
RATE
Another supportive factor for equities is the easing of bond yields. The ten-year German fell to 2.721%, after rising the day before to its highest level since July 2011 at 2.77%.
Over the week, it has so far posted an increase of 18.5 basis points, its largest weekly increase since December.
Morgan Stanley, BNP Paribas and Barclays raised their European Central Bank terminal deposit rate forecast to 4% as inflationary pressures persist.
These revisions come after the governor of the Belgian central bank said that the ECB could consider raising its key rate to 4% if underlying inflation remains persistently high.
In the United States, the yield on Treasuries with the same maturity lost seven basis points, to 4.0086%.
CHANGES
The dollar dropped 0.3% against a basket of six international currencies. The euro climbs back above 1.06.
OIL
The oil market is losing ground but heading for a week-to-week rise of around 2% as renewed optimism about a recovery in Chinese demand outweighs recession fears.
Brent fell 0.6% to 84.24 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.52% to 77.75 dollars.
MAIN ECONOMIC INDICATORS ON THE AGENDA FOR MARCH 3:
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
USA 3:00 p.m. ISM services index February 54.5 55.2
(Laetitia Volga, edited by Matthieu Protard)
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