Rates worry, Adidas disappoints, “techs” weigh on Wall Street

by Claude Chendjou

PARIS (Reuters) – Wall Street is expected to fall on Friday at the opening and the European stock markets fell mid-session on their way to equity markets down over the whole week after repeated warnings from the central bankers on interest rates, while several financial publications are disappointing. Futures on New York indices signal an opening on Wall Street down 0.43% for the Dow Jones, 0.62% for the Standard & Poor’s 500 and 1.04% for the Nasdaq. In Paris, the CAC 40 lost 1.37% to 7,089.85 around 12:45 GMT. In Frankfurt, the Dax fell 1.54% and in London, the FTSE dropped 0.59%.

The pan-European FTSEurofirst 300 index fell by 1.2%, the EuroStoxx 50 of the euro zone by 1.59% and the Stoxx 600 by 1.38%.

Over the week as a whole, the CAC 40 is currently contracting by 2.0% and the Stoxx 600 is down by 1.05%, the trend being weighed down by doubts about the scenario of a marked slowdown in the economy. inflation and a soft landing for the economy.

After the monthly job creation figures exceeded expectations in the United States, the statistics of weekly jobless claims in the United States, published on Thursday, showed that the four-week moving average had fallen to 189,250 against 191,750 previously, confirming a job market still buoyant as the US Federal Reserve (Fed) strives to curb demand to curb persistent inflation.

The estimate of UK GDP for the fourth quarter of 2022, released on Friday, which shows the UK narrowly escaped a recession, is also not likely to reassure investors, fueling fears of a ” stagflation”.

“I think it’s safe to say that the champagne can stay cool after today’s data,” said Craig Erlam, market analyst at Oanda, adding that a revision to Britain’s GDP could confirm the country’s entry into recession.

WALL STREET VALUES TO FOLLOW

Lyft plunged 32.9% in pre-market trading in response to the ride-hailing services group’s profit forecast significantly below expectations for the current quarter. Its competitor Uber drops 3.7%.

Tech and growth stocks like Apple, Amazon, Microsoft, Tesla and Alphabet fell 0.2% to 2.8% and weighed heavily on Nasdaq futures.

VALUES IN EUROPE Among the major sectors with a European rating, distribution and energy stand out with a drop of 3.43% and 1.86% respectively.

The first is penalized by Adidas (-11.51%) which warned about its results for this year, dragging down its competitor Puma, down 5.25%.

Energy, on the other hand, is driven by BP (+3.44%), Shell (+1.94%) and TotalEnergies (+2.28%) in the wake of the rise in oil prices, Russia having announced a reduction in its production of 500,000 barrels per day next month.

In other business news, L’Oreal fell 3.32% after its “very poor” sales in China, while Swedish defense equipment supplier Saab, at the top of the Stoxx 600, jumped 9 .1% thanks to its results and forecasts.

RATES The ten-year German Bund yield rose more than five basis points, to 2.36%, heading for its biggest weekly increase (+16.5 points) since the start of the year, in reaction to the latest statements from officials of the European Central Bank (ECB) against an imminent end to the rise in the cost of credit.

In the United States, where the markets are banking on at least two new rate hikes from the Fed, the yield on ten-year Treasuries is up nearly three points, to 3.71%.

EXCHANGES On the foreign exchange market, the Japanese currency strengthened against the greenback, at 129.82 yen for the dollar, in reaction to the probable appointment of Kazuo Ueda, academic and former member of the board of governors of the central bank , as the next governor of the Bank of Japan (BoJ). Seen as pragmatic, traders believe he could influence the central bank’s ultra-accommodative policy.

Against a basket of international currencies, however, the dollar advanced 0.22%, while the euro fell 0.43% to 1.069 dollars.

The pound, for its part, was affected by the British GDP figures in the fourth quarter and lost 0.19% to 1.2096 dollars.

OIL

Oil prices are rising, with Russian Deputy Prime Minister Alexander Novak saying that Moscow will cut its crude production in March by around 5% in response to the West’s decision to cap the price of black gold and oil. Russian petroleum products.

Brent gained 2.26% to 86.41 dollars a barrel and US light crude (West Texas Intermediate, WTI) 2.23% to 79.80 dollars.

Both oil benchmarks are heading for an 8% gain for the week as a whole.

NO MORE MAJOR ECONOMIC INDICATOR ON THE FRIDAY AGENDA

THE MARKET SITUATION:

(Some data may show a slight shift)

WALL STREET

Indices Last Var. Var. %

points

Dow Jones 33581.00 -153.00 -0.45%

S&P 500 4062.00 -29.75 -0.73%

Nasdaq-100 12284.50 -141.00 -1.13%

“The Day Ahead” – The point on the next

session on wall street [DAY/US]

The session

former :

Closing Indices Var. Var. %YTD

points

Dow Jones 33699.88 -249.13 -0.73% +1.67%

S&P 500 4081.50 -45.73 -1.11% +6.30%

Nasdaq 11789.58 -120.94 -1.02% +12.64%

Nasdaq 100 12381.17 -114.21 -0.91% +13.18%

MARKETS

EUROPEANS

Indices Last Var. Var. %YTD

points

Eurofirst 300 1,798.48 -23.35 -1.28% +7.15%

Eurostoxx 50 4174.77 -75.37 -1.77% +10.05%

CAC 40 7077.53 -110.83 -1.54% +9.33%

Dax 30 15,252.09 -271.33 -1.75% +9.54%

FTSE 7857.94 -53.21 -0.67% +5.45%

SMI 11,054.42 -163.31 -1.46% +3.03%

The values ​​to follow in Paris and

in Europe : [WATCH/LFR]

CHANGES

Standby Price Var.% YTD

Euro/Dlr 1.0681 1.0736 -0.51% -0.20%

DLR/Yen 130.94 131.56 -0.47% -0.12%

Euro/Yen 139.88 141.27 -0.98% -0.29%

Dlr/CHF 0.9238 0.9222 +0.17% -0.06%

Euro/CHF 0.9869 0.9902 -0.33% -0.26%

Stg/Dlr 1.2088 1.2122 -0.28% -0.07%

Index $ 103.4850 103.2210 +0.26% +7.60%

RATE

Last Var. Spread/Bund

(pts)

Future Bunds 136.1700 -0.4900

10-year bunds 2.3510 +0.0400

Bund 2 years 2.7560 +0.0670

10-year OATs 2.8120 +0.0450 +46.10

Treasury 10 3.6997 +0.0170

years

2-year Treasury 4.5043 -0.0050

OIL

(in dollars) Previous Price Var Var. %YTD

you

US light crude 79.72 78.06 +1.66 +2.13% +30.24%

Brent 86.31 84.50 +1.81 +2.14% +30.71%

(Written by Claude Chendjou, edited by Kate Entringer)