Traders work for CMC Markets, London
by Claude Chendjou
PARIS (Reuters) – The main European stock markets are expected to rise slightly on Friday at the opening for the last session of a week marked by economic statistics testifying to the resistance of the American economy and offensive statements by central bankers on a continuation of monetary tightening as a new burst of indicators is expected during the day.
According to the first indications available, the Parisian CAC 40 should gain 0.38% at the opening, the Dax in Frankfurt 0.33% and the FTSE 100 in London 0.31%. The EuroStoxx 50 index is expected to rise by 0.21%.
After strong US data on durable goods orders, new home sales and consumer confidence, the final gross domestic product (GDP) statistic showed 2.0% annualized growth in the first quarter. , a better than expected figure.
To reinforce or temper this positive trend for the economy, investors will watch at 12:30 GMT the data on household income and expenditure in the United States, which incorporates the PCE price index, the preferred measure of inflation by the Reserve. federal (Fed), as well as at 14:00 GMT the Michigan confidence index.
In Europe, after the data showing a reacceleration of inflation in Germany in June, to 6.8% over one year, the market will be informed at 09:00 GMT of the figures for this indicator for the whole of the euro zone.
With regard to economic developments, retail sales in Germany increased by 0.4% in May from one month to another against +0.8% the previous month. In Britain, first-quarter GDP growth was confirmed at 0.1%.
AT WALL STREET
The New York Stock Exchange ended up on Thursday, driven by the big banks after successful “stress tests”.
The Dow Jones Industrial Average gained 0.8%, or 269.76 points, to 34,122.42 points.
The broader S&P-500 gained 19.58 points, or 0.45%, to 4,396.44 points.
The Nasdaq Composite advanced by 0.42 points (0.00%) to 13,591.33 points.
The Fed’s annual “stress test” which showed that these establishments have enough capital to face a serious economic crisis. Morgan Stanley, Bank of America, Goldman Sachs, JPMorgan Chase and Wells Fargo gained 1.5% to 4.5%.
IN ASIA
On the Tokyo Stock Exchange, the Nikkei index ended down 0.14% at 33,189.04 points and the wider Topix fell 0.33% to 2,288.6 points.
The MSCI index comprising stocks from Asia and the Pacific (excluding Japan) took 0.3%, moving towards a gain of just over 1% for the first half.
In China, the Shanghai SSE Composite rose 0.75% and the CSI 300 gained 0.69% on hopes of further support measures from Beijing.
Manufacturing activity in China contracted in June for the third consecutive month with an official PMI index at 49.0, in line with consensus, after 48.8 in May. The official PMI services index fell this month to 53.2, after 54.50 previously, its lowest level since last December.
RATES/EXCHANGES
The yield on ten-year US Treasury bonds on Friday lost some ground to 3.8523%, after hitting a three-month high the previous day at 3.868%. Its German equivalent of the same maturity appears practically unchanged, at 2.417% after an increase of 9.5 basis points on Thursday.
The dollar is almost stable (+0.03%) against a basket of reference currencies, including the euro, which stands at 1.0859 dollars (-0.05%).
The Japanese currency fell to 145 yen to the dollar for the first time since November, raising the prospect of intervention by Tokyo authorities in the foreign exchange market. In a further warning, Japanese Finance Minister Shunichi Suzuki said on Thursday that his country would not rule out any options to react to moves in the yen.
OIL
The oil market is being driven by the sharp decline in US crude inventories which outweighs fears that rising interest rates could undermine demand.
Brent advances by 0.16% to 74.46 dollars a barrel and could record its first monthly gain of the year on Friday.
American light crude (West Texas Intermediate, WTI) took 0.07% to 69.91 dollars.
(Written by Claude Chendjou, edited by Jean-Stéphane Brosse and Blandine Hénault)