A trader on the Frankfurt Stock Exchange
by CORENTIN CHAPRON
Wall Street is expected to fall at the opening on Friday, while the European stock markets are in decline at mid-session, worried about the escalation of tensions in the Middle East which are weighing on risk appetite and pushing up prices. petrol.
Futures on New York indices suggest Wall Street opening in the red, with the Dow Jones dropping 0.26%, while the Standard & Poor’s 500 drops 0.3% and the Nasdaq 0.38%.
In Paris, the CAC 40 declined by 1.19% to 6,838.85 points around 10:55 GMT, compared to 0.82% for the FTSE in London, and 1.22% for the Dax in Frankfurt.
The pan-European FTSEurofirst 300 index lost 0.94%, compared to 1.13% for the EuroStoxx 50 and 0.98% for the Stoxx 600.
The interception of missiles coming from Yemen by an American ship and the evacuation of an Israeli town near the Lebanese border has raised fears of an extension of the conflict, as Israel prepares for a ground invasion of Gaza.
Investors are therefore reducing the risk level of their portfolios before the weekend in order to protect themselves against a worsening of the situation during the close of the markets, which offers a little respite to bond yields, which are falling after having reached 5% for the 10 years American.
Gold, although expensive while the dollar is close to its one-year high, continues to rise and reaches a three-month high, while demand for the American currency and the Swiss franc, two other safe haven assets, remains strong.
Questions about the trajectory of rates could nevertheless push bonds lower again next week, after comments from Jerome Powell, the chairman of the Federal Reserve, who stressed that if high yields fell “at the margin” the needed for the Fed to raise its rates again, the resistance of the American economy required close monitoring.
Adding to market pessimism, China has decided to limit its graphite exports, a sign that tensions with the United States remain high, while the European Central Bank (ECB) is expected to raise rates during its monetary policy meeting. of the next week.
RATE
Yields are falling in a context of risk aversion ahead of the weekend, during which the situation in Gaza could deteriorate.
The ten-year Treasury yield fell 4.2 bps to 4.9456% after having exceeded 5% during the session, under pressure from restrictive comments from Jerome Powell, while the two-year fell 1.6 bps to 5.1547%.
The German ten-year yield is stable at 2.927%, with that of the two-year rate declining by 4.3 bp to 3.221%.
OIL
Crude is rising, worried about a possible conflagration in the Middle East, while the United States continues to fill its strategic oil reserve and seeks to buy 6 million barrels for delivery in December and January.
Brent rose 1.1% to $93.4 per barrel and American light crude (West Texas Intermediate, WTI) gained 1.35% to $90.58.
VALUES TO FOLLOW IN WALL STREET
VALUES TO FOLLOW IN EUROPE
L’Oréal dropped 1.48% after announcing Thursday evening that organic growth in its turnover in the third quarter was below expectations, due in particular to a decline in sales in Asia. The fall in the stock brings with it the luxury sector, which loses 0.57%, with Kering, Hermès and LVMH dropping 1.64%, 0.94% and 0.72% respectively.
Vivendi gains 2.66%, at the top of the CAC 40, after publishing a turnover higher than expectations in the third quarter, driven by the growth of its Canal+ and Havas divisions.
CHANGES
Variations are limited on currencies, with the dollar stable against a basket of reference currencies despite Powell’s restrictive comments.
The euro gained 0.06% to 1.0585 dollars.
NO MAJOR ECONOMIC INDICATOR ON THE AGENDA FOR OCTOBER 20
(Written by Corentin Chappron, edited by Blandine Hénault)