The Paris Stock Exchange is expected to rise on Friday, after a surge in bond rate fever this week, with the session promising to be loaded with inflation indicators from several European countries, before the start of the results season.
The futures contract for the flagship CAC 40 index advanced by 0.57% around forty minutes before the start of the session. On Thursday, the index fell by 21.64 points, ending at 8,023.74 points at the end of a session marked by the European Central Bank (ECB) which prepared the ground for a first rate cut in June given falling inflation and sluggish economic activity in Europe.
With inflation of 2.4% in March, the ECB is in a more favorable position than the United States to begin easing its monetary policy, with the main Western central banks pursuing the objective of reducing inflation to 2%.
In terms of inflation, the week was mainly marked by the unexpected figures for the consumer price index (CPI) in March in the United States, which the market continues to digest, notes Stephen Innes, Spi AM analyst. .
This index surprised the market upwards for the third consecutive month, pushing bond rates to tighten significantly.
The yield on 10-year American government bonds, for example, reached a new high of almost five months, 4.59%.
The day after the unpleasant CPI surprise, investors were relieved by the producer price index (PPI), lower than expected (+0.2% over one month in March).
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On the agenda of the session, the market will be attentive to the inflation figures which will be published in France, Germany, Spain and Sweden.
On the other side of the Atlantic, the preliminary estimate of the index measuring consumer confidence in April (University of Michigan) will be published in the afternoon.
As for the central bankers, investors will listen, after the closing, to the President of the San Francisco Fed, Mary Daly, who is participating in a round table on fintechs in San Francisco in the United States.
Finally, the session kicks off earnings season, with a flock of financials including JPMorgan Chase, Wells Fargo and Citigroup.