La hausse devrait se poursuivre en Europe, la BoE à suivre

La hausse devrait se poursuivre en Europe, la BoE à suivre


EUROPEAN STOCK MARKETS EXPECTED TO RISE MODERATELY

by Laetitia Volga

PARIS (Reuters) – Major European stocks are expected to rise moderately at the open on Thursday in the wake of Wall Street, as strong economic data and company results helped lure investors into risky assets.

Futures contracts are up 0.16% for the Paris CAC 40, 0.35% for the Frankfurt Dax, 0.12% for the London FTSE and 0.16% for the EuroStoxx 50.

The European market should start the session with the same tone as the day before after the good reception reserved for the results of several large groups and the announcement of a surprise acceleration of the services ISM in the United States that has reinforced the idea that the The economy The US is not in a recession despite the drop in GDP in the first half.

The day will be marked by new company results and monetary policy announcements from the Bank of England, which could raise its benchmark rate by 50 basis points according to most investors and analysts.

On the Fed side, other officials on Wednesday affirmed their determination to rein in inflation, although Mary Daly, president of the San Francisco branch, told Reuters a half-point hike could be enough in September.

“Expectations that the Fed is backing away from monetary tightening have been demolished in the last 48 hours by almost everyone, with officials suggesting that rate hikes will continue at a fairly aggressive pace,” said Rob Carnell of ING.

“That message hasn’t gotten through to the stock market, which is based on a reasonably strong set of results and pretty decent economic data and thinks that’s great, rather than doing what it wants. It should do and say that.” [le discours de la Fed est] quite worrying,” added the research manager.

VALUES TO FOLLOW:

Following strong quarterly results from Societe Generale on Wednesday, Crédit Agricole posted better-than-expected results in the second quarter thanks to a record level of activity in investment banking, as market volatility generated strong demand for coverage.

ON WALL STREET

The New York Stock Exchange closed sharply higher on Wednesday as strong earnings forecasts from Paypal (+9.25%) and CVS Health (+6.3) boosted investor confidence and helped lift the Nasdaq to a record high since early May.

The Dow Jones Industrial Average gained 1.29% to 32,812.50 points, the broader S&P-500 gained 1.56% to 4,155.12 points and the Nasdaq Composite advanced 2.59% to 12,668.16 points.

Moderna jumped about 16% after announcing a $3 billion share buyback program.

Regeneron Pharmaceuticals rose 5.9% after posting better-than-expected quarterly revenue, while coffee shop chain Starbucks rose 4% after reporting quarterly profit that beat expectations.

Futures are signaling a little changed open.

IN ASIA

In Tokyo, the Nikkei advanced 0.69% following the wake of Wall Street and supported by good corporate results.

Automaker Subaru rose 8.48% on its results and upbeat forecast, but competitor Toyota fell 2.99% on the steepest-than-expected drop in its quarterly operating profit.

Casio Computer rose 6.29% on current quarter earnings target above expectations, while Nintendo <7974.T> it garnered 0.41% as the video game maker maintained its full-year guidance despite quarterly sales of the Switch console falling year-over-year.

In China, the CSI 300 mounts 0.63% and the SSE Composite of Shanghai gagne 0.55%, although the attention of investors turns to signs of acceleration of investments in infrastructures aimed at relaunching the economy From the country.

CHANGES

The dollar remains unchanged against a basket of reference currencies (-0.03%) after having benefited the day before from statements by members of the Fed.

The euro is shown at $1.0157.

SPEED

In the bond market, the ten-year US Treasury bond yield fell two basis points to 2.73%, after hitting a two-week high on Wednesday at 2.851% in reaction to the “hardline” comments from Fed members and to good surprise. of ISM services.

The ten-year German remains stable at 0.858%.

OIL

Concerns about oil supply contributed to the rebound in prices, which the day before touched their lowest levels in six months due to the announcement of the Energy Information Administration (EIA) of an unexpected increase in crude oil and gasoline inventories in the United States last week. .

Brent rose slightly to $96.55 a barrel and US light crude (West Texas Intermediate, WTI) to $90.54.

OPEC +, which groups the Organization of Petroleum Exporting Countries and its allies, decided this Wednesday to raise its September production target by just 100,000 barrels per day, a setback for President Joe Biden after his trip to Saudi Arabia last month to convince Riyadh. to open the floodgates to lower prices.

(Laetitia Volga, editing by Kate Enterringer)

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