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by Laetitia Volga
PARIS (Reuters) – Wall Street is expected to be in scattered order at the opening and European stock markets fell mid-session on Friday, still under the influence of announcements from the European Central Bank (ECB), which allow the euro to rise. enjoy.
Futures point to an opening down 0.32% for the Dow Jones, virtually unchanged for the S&P-500 and up 0.81% for the Nasdaq after its rout on Thursday.
The tech-heavy index is set to benefit from announcements from Amazon, which posted a quarterly profit above expectations, after falling 3.74% following disappointing forecasts from Meta Platforms, the parent company. from Facebook.
In Paris, the CAC 40 lost 0.65% to 6,960.17 around 12:40 GMT. In Frankfurt, the Dax lost 1.23% while in London, the FTSE limited its decline (-0.03%), supported by the rise in energy-related stocks.
The pan-European FTSEurofirst 300 index fell by 0.99%, the EuroStoxx 50 of the euro zone by 1.04% and the Stoxx 600 by 1%.
European indices deepen their losses from the day before, the more restrictive orientation suggested by the ECB on Thursday fueling fears of a possible monetary tightening by the institution this year against a backdrop of increased inflationary risks.
During the press conference following the ECB meeting, Christine Lagarde did not reaffirm that a rate hike this year was “very unlikely”, leaving the door open for such an initiative in the eyes of investors.
Deutsche Bank, BNP Paribas, Bank of America, Commerzbank and Goldman Sachs now expect a new round of rate hikes from September, with two hikes of 25 basis points by the end of the year. JP Morgan and Danske Bank expect just one 25 basis point rate hike in December.
Among the indicators on the program for the afternoon, the market will follow the publication of the US employment report at 13:30 GMT. According to economists polled by Reuters, the United States should have created 150,000 jobs in January, after 199,000 in December.
“Investors are likely to overlook what is sure to be a weak jobs report,” said Bryce Doty at Sit Fixed Income Advisors.
“The slowdown in COVID-19 cases, coupled with the Federal Reserve not likely to be deterred from raising rates, should lead investors not to overemphasize January data,” the manager added. .
WALL STREET VALUES TO FOLLOW
In pre-market trading, the global e-commerce giant Amazon climbed 12%.
Snap and Pinterest, which had suffered heavily from the setbacks of Meta Platforms on Thursday, are shown to be up sharply in pre-market trading, +45.9% and +15.3% respectively, after the publication of their results.
Ford is reported down 5% after posting worse-than-expected fourth-quarter earnings.
VALUES IN EUROPE
All European sectors fell at midday, with the exception of energy (+1.45%) which benefited from the rise in oil prices. The Stoxx automobile index shows the biggest drop and yields 2.91%.
In Paris, Stellantis lost 4.34% and TotalEnergies gained 1.57%.
Publicis (+2.95%) continues to benefit from the solid annual results and forecasts announced Thursday
Vinci gains 0.27% after saying it anticipates annual net profit above that of 2019, before the pandemic.
Orpea and Korian fall by 13.14% and 21.40% respectively after the announcement of an ongoing investigation by France 2 magazine “Cash Investigation” into practices within private nursing homes which is added to the publication recent publication of a book-investigation revealing serious dysfunctions in the sector of retirement homes.
RATE
On the bond market, the yields on government bonds in the euro zone recorded record highs on expectations of rate hikes by the ECB during the year.
The German Bund’s five-year outlook moved into positive territory for the first time in nearly four years. The ten-year rose as high as 0.203%, a level it had not reached since March 2019, before returning to 0.176%. Its French equivalent registered a high for about three years, at 0.648%.
“The scale of the European bond sell-off clearly shows that the ECB’s turn has taken the market by surprise,” said Rohan Khanna, strategist at UBS.
On the American market, the yield of ten-year Treasuries varies little, being displayed at 1.8238%.
CHANGES
The euro gained 0.32% to 1.1475 dollars, accentuating its strong growth on Thursday following remarks made by Christine Lagarde. It is heading for its best weekly performance since March 2020, the outbreak of the COVID-19 pandemic, and has so far gained nearly 2.90% since the start of the week.
The dollar lost 0.16% against a basket of international currencies.
OIL
Oil prices are at their highest level in seven years, as geopolitical tensions and a winter storm hitting the central and northeastern United States fuel fears over supply disruption.
A barrel of Brent gained 1.79% to 92.74 dollars and American light crude rose 1.84% to 91.93 dollars. They are at their highest since October 2014.
(Laetitia Volga, edited by Blandine Hénault)
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