by Augustin Turpin
(Reuters) – Wall Street is expected to rise and the European stock markets are progressing strongly at mid-session on Friday, with the CAC 40 having recorded a session record around 10:15 a.m. GMT, at 8,256.85 points.
The indexes are buoyed by strong corporate results in the first quarter and the resumption of bets on future interest rate cuts.
New York index futures signal Wall Street opening up 0.29% for the Dow Jones, 0.37% for the Standard & Poor’s-500 and 0.44% for the Nasdaq.
In Paris, the CAC 40 rose 0.81% to 8,253.75 around 10:45 GMT. In Frankfurt, the Dax by 0.63% and in London, the FTSE by 0.83%.
The pan-European FTSEurofirst 300 index takes 0.89%, the euro zone’s EuroStoxx 50 0.79% and the Stoxx 600 0.88%.
European markets are regaining momentum after a slowdown in trading in April, with indices having recorded exceptional gains since the end of 2023 with the craze for artificial intelligence.
Activity in the United Kingdom rebounded at a faster pace than consensus expected, and emerged from recession in the first quarter.
Adding to the encouraging outlook, the Bank of England highlighted its confidence in inflation slowing to 2% at its latest monetary policy meeting, suggesting rates could be eased more than expected. by consensus.
“The improving macroeconomic backdrop should support the European equity market… valuations remain very reasonable and there may still be room for them to grow,” said Thomas McGarrity, an analyst at RBC Wealth Management.
The European utilities compartment gained 1.7%, driven by the rise in Enel shares (3.2%), the Italian group having reported profits above expectations in the first quarter, while the resources compartment of base increased by 2.1%, following the rise in precious metal prices.
VALUES TO FOLLOW AT WALL STREET
Shares of gold mining companies are rising in pre-market trading as the price of gold rises. Newmont and Barrick Gold shares each gained 1.8%.
The artificial intelligence technology group Soundhound is up 15.6% in pre-market trading after raising the bottom of the range of its annual sales forecasts.
VALUES IN EUROPE
Italian truck manufacturer Iveco gains 5.2%, after announcing higher operating profit for the first quarter, with margin improvement in all business segments.
Zalando increased by 2.3% and the Italian Defense group Leonardo by 3.4% after changes in recommendation.
RATE
Bond yields in the euro zone are falling, following the trend across the Atlantic, in a context of wait-and-see before the publication of American inflation data, which should give more indications on the trajectory of rates.
The German ten-year yield lost 2.2 basis points (bps) to 2.475%, while that of the two-year rate was stable (0 bps) at 2.94%.
The ten-year US Treasury gained 0.6 bps to 4.4551%.
CHANGES
The greenback is recovering from Thursday’s losses, driven by the publication of data showing signs of weakening in the US job market.
The dollar advances (0.03%) against a basket of reference currencies, while the euro loses 0.04% to 1.0777 dollars.
OIL
Oil prices are climbing, supported by the geopolitical context as Israel bombs Rafah, as well as by the latest Chinese activity figures, published on Thursday.
Brent rose 0.66% to $84.43 per barrel, with American light crude (West Texas Intermediate, WTI) increasing 0.78% to $79.88.
(Written by Augustin Turpin)
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