THE MAIN EUROPEAN EXCHANGES ARE EXPECTED WITHOUT MAJOR CHANGES
by Laetitia Volga
PARIS (Reuters) – Major European stocks are expected to remain unchanged at the open on Friday as investors remain unsure how aggressively the Federal Reserve will raise U.S. interest rates despite the slowdown in inflation last month. .
The first indications available point to a fall of 0.04% for the Parisian CAC 40, 0.07% for the Frankfurt Dax, 0.02% for the London FTSE and 0.05% for the EuroStoxx 50 .
Thursday’s release of an unexpected monthly drop in the US Producer Price Index confirmed calm on the US inflation front after price figures missed consumer expectations.
While this initially delighted investors by raising hopes of less-than-expected monetary tightening from the Fed, several Fed officials cautioned against excessive optimism.
San Francisco Fed President Mary Daly said Thursday that while a half-point rate hike in September “makes sense,” she is open to the possibility of a larger increase in the face of inflation, even more than four times higher than the 2% target.
“The market will realize that the Fed’s Monetary Policy Committee still has a lot of work to do and will have to raise the fed funds rate target to 4% by the end of the year,” said Carol Kong of the Commonwealth Bank. of Australia. . “I think there is some room for markets to revise their expectations for the ‘fed funds’ rate higher.”
ON WALL STREET
The New York Stock Exchange closed in a mixed order on Thursday, with the Nasdaq and S&P 500 closing slightly lower on lingering uncertainties about the pace of the Fed’s monetary tightening.
The Dow Jones Industrial Average gained 0.08% to 33,336.67 points, the Nasdaq Composite fell 0.58% to 12,779.91 points and the S&P-500 lost 0.07% to 4,207.33 points.
The latter hit a three-month high in the session on producer price data, but Fed officials left little doubt that they intended to tighten monetary policy until inflation pressures abated completely.
In values, Disney gained 4.68% after announcing that the number of its subscribers to its video streaming platforms had surpassed that of Netflix.
Futures contracts point to a slightly higher session of 0.1% to 0.3%.
On the Tokyo Stock Exchange, closed on Thursday for a holiday, the Nikkei jumped 2.36% to its highest level since mid-January, in turn reacting to slowing inflation in the United States.
SoftBank, the main contributor to the rise in the index, gained 5.81% after announcing it would make a $34.1 billion profit by cutting its stake in Alibaba.
Honda Motor rose 3.47% as the automaker raised its full-year operating profit outlook on a weak yen.
In China, Shanghai’s SSE Composite Index and mainland China’s large-cap CSI 300 lost 0.14% amid a COVID-19 outbreak.
The health authorities have listed more than 2,000 new contaminations by the SARS-CoV-2 coronavirus on Wednesday and Thursday compared to around a thousand in the previous days.
The dollar rises slightly against a basket of international currencies (+0.1%) and the euro remains stable at 1.032.
In the bond market, the 10-year Treasury yield fell slightly to 2.8657% on the day after a three-week high of 2.902%, investors downplaying the impact of the latest US inflation figures. UU. in the determination of the Fed to continue with its monetary adjustment. .
Oil prices have eased amid uncertainty over demand prospects following diverging forecasts from OPEC and the International Energy Agency.
Brent fell 0.54% to $99.06 a barrel and US light crude (West Texas Intermediate, WTI) fell 0.6% to $93.77.
(Written by Laetitia Volga, edited by Matthieu Protard)
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