PARIS (Reuters) – Wall Street is expected to show no clear direction on Friday after hitting records in recent days, while European indices are falling mid-session, worried about the outlook for rates in Europe.
New York index futures suggest a directionless open for the Dow Jones, Standard & Poor’s 500 and Nasdaq.
In Paris, the CAC 40 fell 0.42% to 8,154.15 points around 11:15 GMT. The Dax in Frankfurt lost 0.33%, compared to 0.36% for the FTSE in London.
The pan-European FTSEurofirst 300 index fell by 0.27%, compared to 0.41% for the EuroStoxx 50 and 0.36% for the Stoxx 600.
Investors on Wall Street are taking a break after bringing the Dow Jones to more than 40,000 points during the session on Thursday, while the MSCI world equity index hit a record, supported by hopes of an imminent easing of the American monetary policy.
The latest CPI inflation figures published on Wednesday in the United States have indeed surprised on the downside, raising hopes that price dynamics will prove less persistent than initially feared, which could allow the Federal Reserve to lower these rates several times. repeated this year.
In the eurozone, markets are worried about the latest comments from the chief economist of the European Central Bank, Isabel Schnabel, who warned on Friday that “the (monetary) trajectory beyond June is much more uncertain” .
Fewer rate cuts than expected could weigh on the bloc’s growth, which is picking up timidly after a year and a half of sluggish activity. Investors will be attentive to upcoming publications on both sides of the Atlantic.
“The market is already focused on the upcoming inflation figures, but next week’s PMI data will first guide sentiment on US and Eurozone growth,” explain ING strategists, who point out that a divergence between the two zones could put pressure on European rates.
VALUES TO FOLLOW IN WALL STREET
Microsoft said Thursday it plans to offer customers of its cloud computing products access to artificial intelligence chips made by AMD that can compete with components from Nvidia.
Applied Materials, a manufacturer of semiconductor equipment, announced Thursday that it expects third-quarter revenue to exceed Wall Street estimates.
VALUES TO FOLLOW IN EUROPE
Engie published declining results on Friday for the first quarter, marked by the drop in energy prices and a mild climate, and fell by 2.31%.
Scor plunged 7.83% after reporting a net result below expectations and a disappointing performance from its life and health branch.
The artificial heart manufacturer Carmat fell 24.91% after announcing a fundraising of 16 million euros, its second capital increase this year.
Eiffage and Entech announced on Thursday that they had created a joint venture in energy storage, which increased Entech by 8.72%.
Richemont reported on Friday a drop in its sales over the three months to the end of March, but the markets considered its results reassuring and caused the stock to jump 5.35%.
RATE
Yields are increasing in the eurozone after Isabel Schnabel’s latest comments.
The yield on the German ten-year rate rose by 4.1 bps to 2.485%, that of the two-year rate by 2.7 bps to 2.948%.
The ten-year Treasury yield nibbles 1.2 bps to 4.3886%, while the two-year is stable at 4.7884%.
CHANGES
The dollar’s rebound continues, but the currency is nevertheless expected to record a sharp weekly decline after indicators suggesting that inflation and activity are slowing in the United States.
The dollar advanced 0.27% against a basket of reference currencies, the euro lost 0.23% to $1.084, and the pound sterling lost 0.13% to $1.265.
OIL
Crude is hesitating, with markets digesting the latest data which raises hopes of a slowdown in inflation and a drop in rates in the United States, but which also raises fears of a slowdown in activity across the Atlantic.
Brent nibbles 0.16% to 83.4 dollars per barrel, American light crude (West Texas Intermediate, WTI) is stable at 79.25 dollars.
(Written by Corentin Chappron, edited by Kate Entringer)
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