Slight rise in sight for European equities

Slight rise in sight for European equities


SLIGHT RISE IN SIGHT IN EUROPEAN EQUITIES

by Laetitia Volga

PARIS (Reuters) – Major European stocks are expected to rise on Thursday ahead of the opening of the Jackson Hole central bankers symposium in the United States, amid uncertainty over rising interest rates, inflation and global growth. .

Futures contracts are up 0.41% for the Paris CAC 40, 0.8% for the Frankfurt Dax, 0.61% for the London FTSE and 0.65% for the EuroStoxx 50.

A traditional end-of-summer meeting, the Jackson Hole central bankers’ meeting, which starts this Thursday, could help give the market direction.

Friday’s intervention by Federal Reserve Chairman Jerome Powell is the biggest development as investors fear the US central bank will keep pace with its rate hike after a succession of statements seen as dovish by several of its officials. in the last days.

According to the Fedwatch barometer, the markets estimate the probability of another 75 basis point rate hike in a month at 58.5%, compared to 41.5% for a half point hike.

Meanwhile, several economic indicators will liven up the session, such as the German business climate index for the month of August and the second estimate of the US gross domestic product in the second quarter.

The German economy grew 0.1% in the second quarter, while the Reuters consensus expected stagnation, detailed GDP figures released by Destatis show.

The publication at 11:30 GMT of the minutes of the July meeting of the European Central Bank (ECB) will also be followed by observers.

ON WALL STREET

The New York Stock Exchange closed on Wednesday, boosted by gains in energy stocks and Intuit (+3.6%), after the publication of good results, while investors await the opening of the annual Fed symposium.

The Dow Jones Industrial Average gained 0.18% to 32,969.23 points, the broader S&P-500 gained 0.29% to 4,140.77 points and the Nasdaq Composite advanced 0.41% to 12,431.53 points.

All 11 sector indices of the S&P 500 rose, led by energy, up 1.2%, ahead of real estate (+0.71%).

Exercise bike maker Peloton jumped 20.35% after announcing it would sell its products on Amazon, while department store group Nordstrom fell 19.96% after lowering its full-year revenue and profit forecast.

Futures are signaling a rise of 0.75% to 0.9%.

IN ASIA

After five consecutive sessions in the red, the Tokyo Nikkei gained 0.58%, supported by the rise in pharmaceutical shares, such as Daiichi Sanky (+4.6%).

In China, stocks are moving in a mixed order despite new signs of government support, particularly in favor of the labor market.

The large-cap CSI 300 index in mainland China lost 0.11% and the Shanghai SSE Composite gained 0.14%.

FEES/CHANGES

The 10-year Treasury yield is virtually unchanged in Asian trade, at around 3.1%. Its German equivalent earns around two basis points on early trades, up to 1.373%.

In the foreign exchange market, the dollar fell 0.51% against a basket of reference currencies after having touched a maximum of almost twenty years on Tuesday.

The euro took the opportunity to gain 0.49% and return slightly above parity with the US currency, at 1.0014 dollars.

OIL

Oil prices are rising as Saudi Arabia suggested earlier this week that OPEC might consider cutting output.

However, multiple sources said any cuts by the cartel and its allies would likely coincide with the return of Iranian supply to the market if the 2015 nuclear deal is revived.

Prices were also supported by the closure of some facilities at BP’s refinery in Whiting, Indiana, following an electrical fire. This refinery with a capacity of 430,000 barrels per day is an important supplier of fuels for the central United States and Chicago.

Brent crude gained 0.78% to $102.01 a barrel and US light crude (West Texas Intermediate, WTI) gained 0.65% to $95.51.

(Laetitia Volga, editing by Tangi Salaün and Kate Enterringer)

#Slight #rise #sight #European #equities

Leave a Reply

Your email address will not be published.