by Laetitia Volga
PARIS (Reuters) – Wall Street is expected to fall on Friday after announcements deemed disappointing by several “tech” giants, but the European stock markets managed to resist the downward trend in American futures mid-session for the last session of the month. , which should lead to a decline in most major indices.
Futures contracts give a drop of 0.51% for the Dow Jones, 0.98% for the Standard & Poor’s-500, and 1.37% for the Nasdaq.
The latter, which gained more than 3% on Thursday after the well-received results of Meta Platforms, should be penalized by the disappointing forecasts of Apple and Amazon.
The trend could also be influenced by monthly household income and spending figures due at 12:30 GMT, which include the Federal Reserve’s most closely watched “core PCE” price index.
In Paris, the CAC 40 is up 0.5% to 6,540.73 points around 11:45 GMT. In Frankfurt, the Dax gained 0.82% and in London, the FTSE took 0.15%.
The pan-European FTSEurofirst 300 index climbed 0.61%, the Eurozone EuroStoxx 50 0.64% and the Stoxx 600 0.79%.
The rise in European markets is based on some good corporate results and on the declarations of the Political Bureau of the Chinese Communist Party, reported by official media, on its desire to strengthen support for the economy in the face of the health crisis and to geopolitical risks.
Over the whole month of April, however, the Stoxx 600 is currently down 1.3% due to concerns about the prospect of rising US interest rates, the war in Ukraine and the COVID-19 outbreak in China.
The new inflation record in the euro zone, at 7.5% year on year in April, does not seem to have surprised the markets, nor the slight slowdown in growth of the 19 in the first quarter, to 0.2 %.
WALL STREET VALUES TO FOLLOW
Apple lost 3% in pre-market trading, the group having warned that the repercussions of confinements in China and the war in Ukraine should weigh on its sales.
E-commerce giant Amazon also reported disappointing prospects due in part to rising costs. Its stock was down more than 8% before the US market opened.
VALUES IN EUROPE
In Europe, the basic resources sector (2.4%) posted the largest drop, unlike the “utilities” compartment (-0.39%).
On the Paris Stock Exchange, Pernod Ricard advances by 1.24% after having published organic growth in its turnover well above expectations, while Safran gives up 1.93% after warning of the “significant” impacts of the war in Ukraine and inflation.
Accor gains 2.90% and Saint-Gobain 1.2% after the publication of their results.
Deutsche Bank lost 2.55% after the announcement of raids on its premises in Frankfurt as part of an investigation into questionable transactions likely to be money laundering, which the German bank had itself reported.
CHANGES
The dollar is trending lower against a basket of currencies after hitting a 20-year high on Thursday, boosted by the prospect of significant rate hikes in the United States and concerns about global growth.
The euro appreciated by 0.51% against the American currency, to 1.0547. It is, however, heading for a monthly decline of 4.5%, which would mark its worst performance against the dollar since 2015, as traders worry about the effects of the war in Ukraine on the economy and prices.
RATE
On the government bond market, the yield on ten-year US Treasuries is down slightly to 2.8579%.
That of the German Bund with the same maturity rose to 0.907% after the slight acceleration of inflation in the euro zone, which confirms expectations of monetary tightening on the part of the European Central Bank.
The German 10-year is expected to see its fifth consecutive month of growth, with an increase of 38 basis points in April.
“The prevailing sentiment seems to be that ECB support is about to fade, and is fading a little faster than some thought so far,” said Rainer Guntermann at Commerzbank.
OIL
Oil prices are moving higher, with fears of a reduction in Russian supply outweighing those about the impact of health measures in China on demand.
Brent gained 1.76% to 109.48 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.99% to 106.4 dollars.
(Laetitia Volga, editing by Marc Angrand)