PARIS (Reuters) – Wall Street is expected to fall on Friday, while European stock markets, with the exception of the CAC 40, are progressing mid-session after a series of indicators suggesting that central banks will lower rates at the end of the first semester.
New York index futures suggest a mixed opening on Wall Street, with the Dow Jones falling 0.14%, while the Standard & Poor’s 500 loses 0.11% and the Nasdaq looks for direction.
In Paris, the CAC 40 is stable at 7,924.91 points around 11:27 GMT. The Dax in Frankfurt gains 0.40%, compared to 0.65% for the FTSE in London.
The pan-European FTSEurofirst 300 index rose by 0.37%, compared to 0.19% for the EuroStoxx 50 and 0.4% for the Stoxx 600.
Investors are preparing for the publication of the ISM manufacturing index in the United States and the household morale indicator from the University of Michigan, expected at 3:00 p.m. GMT.
These two indicators will end a week full of publications, which give investors hope that central banks will be able to lower their rates at the rate that the markets anticipate in 2024.
In the United States, PCE inflation continued to decline in line with the consensus in January, reassuring operators after producer prices and CPI inflation, published earlier in February, surprised by their resistance.
This should encourage the Federal Reserve to lower rates this year, with market participants positioning themselves for a cut in June.
In the eurozone, inflation was a little higher than expected in February, while unemployment returned to a low of 6.4% in January. The European Central Bank should therefore continue to insist that it will not ease its monetary policy before having more data, postponing a first cut to the June meeting.
“Using our own seasonal adjustment model, we see that core inflation rose month-on-month for the third month in a row due to the acceleration in services inflation,” they point out. ING economists.
“The ECB will want to see this trend broken before lowering rates.”
The next ECB meeting will be held on March 7.
VALUES TO FOLLOW IN WALL STREET
New York Community Bancorp replaced its CEO and reported a fourth-quarter loss more than ten times what it previously reported and revealed flaws in its financial reporting in documents filed Thursday.
Dell Technologies beat Wall Street estimates for its fourth-quarter revenue on Thursday, helped by the boom in artificial intelligence and a recovery in the personal computer (PC) market.
VALUES TO FOLLOW IN EUROPE
Saint-Gobain reported a 6.4% drop in annual revenue on Thursday as strong exchange rates and low volumes weighed on results, pushing the stock down 4. 49%.
Valeo’s cessation of the production of high-voltage motors in Germany due to the slowdown in the electric market has led to the loss of 300 jobs, a spokesperson for the automotive supplier, which is losing 2, told Reuters on Friday. 52%.
Daimler Truck increased its dividend and announced a share buyback program after reporting annual profit and forecasts above expectations, and jumped 14.35%, reaching a historic record during the session.
Leonardo gains 2.2% to a 16-year high after the defense and aerospace company beat its 2023 cash flow and order targets.
Kuehne Und Nagel published annual operating profit on Friday down 49%, a larger drop than expected, and dropped 13.04%.
RATE
Yields are up slightly in Europe after an inflation indicator that was a little higher than expected by the consensus.
The yield on the ten-year Treasury lost 1.7 bps to 4.2346%, while the two-year fell by 4.8 bps to 4.5977%.
The German ten-year yield strengthened by 2.5 bp to 2.429%, that of the two-year rate was stable at 2.8943%.
CHANGES
Forex traders are digesting the latest data series released this week.
The dollar fell 0.06% against a basket of reference currencies, the euro gained 0.11% to 1.0815 dollars, and the pound sterling 0.07% to 1.2632 dollars.
OIL
The barrel is moving ahead of a decision by OPEC+, which could maintain its production at its current level.
Brent rose 1.53% to $83.16 per barrel, American light crude (West Texas Intermediate, WTI) rose 1.55% to $79.47.
MAIN ECONOMIC INDICATORS ON THE AGENDA FOR MARCH 1:
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
US 3:00 p.m. ISM manufacturing February 49.5 49.1*
US 08:55 February household morale 79.6 79.6
the University of Michigan
(final)
(Written by Corentin Chappron, edited by Kate Entringer)
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