View of the Palais Brongniart, the former Paris Stock Exchange
PARIS (Reuters) – Major European shares are expected to rise on Thursday with the prospect of a rebound on Wall Street the day after a limited fall, pending further indications on the economic situation in the United States.
Index futures contracts suggest an increase of 0.94% for the Paris CAC 40, 0.97% for the Frankfurt Dax, 0.59% for the London FTSE 100 and 1.02% for the the Euro Stoxx 50.
Questions about the economic slowdown and the scale of future rate hikes remain at the center of investors’ decisions, but Wednesday’s session showed their mood remained volatile, optimism at the start of the week giving way to concern after a US ISM services index slightly above consensus.
Statements by Mary Daly, president of the San Francisco Fed, underscoring the central bank’s determination to curb inflation, also weighed on the trend.
After Wall Street closed, Raphael Bostic, his Atlanta counterpart, said the fight against inflation was “still in its infancy.”
Waiting for the monthly report on employment in the United States on Friday, the next session will be animated, among other things, by the retail sales statistics in the euro zone (at 09:00 GMT), the publication of the minutes for the month of October European Central Bank meeting (at 11:30 GMT) and US jobless claims figures (at 12:30 GMT).
In Germany, industrial orders fell by 2.4% in August, a sharper-than-expected decline.
ON WALL STREET
The New York Stock Exchange closed this Wednesday in red, after regaining control of the risks of recession and the prospect of a new rise in interest rates after a start to the week marked by a marked increase in appetite for risk.
However, the slide eased late in the session thanks to cheap buying, with all three indices even briefly moving into positive territory.
The Dow Jones Industrial Average fell 0.14%, or 42.45 points, to 30,273.87 points, the Standard & Poor’s 500 lost 7.65 points, or 0.20%, to 3,783.28 and the Nasdaq Composite fell 27, 77 points (-0.25%) to 11,148.64.
Twitter (-1.30%) for its part marked time after gaining 22% on Tuesday after the relaunch of Elon Musk’s purchase offer for 44,000 million dollars. Tesla, led by the billionaire, lost 3.45%.
Index futures so far point to a 0.3% open for the Dow Jones, a 0.32% open for the Standard & Poor’s 500 and a 0.44% open for the Nasdaq.
In Tokyo, the Nikkei index closed 0.7% higher, its fourth straight rally session, posting its best close since September 20, buoyed by energy and semiconductor stocks.
Markets remain closed in China and will not reopen until Monday.
Treasury yields are almost flat in Asian trading after rallying on Wednesday, helped by US indicators on the day.
The ten-year one, which recovered almost 14 basis points during the session, stands at 3.7491% and the two-year one at 4.1459%.
In Europe, the 10-year bond returned to 2.022% in early trading, erasing a small part of its rise from the previous day.
Hesitant since the beginning of the day, the dollar is currently in a downward trend against the other major currencies (-0.14%) after having benefited on Wednesday from the US economic indicators published on Wednesday and from the statements of Fed leaders.
It is trading about 4% below the 20-year high reached last week.
The yen is practically stable but the euro recovers ground against the dollar (+0.25%) at 0.9907.
Sterling (-0.03%) was not affected by Fitch’s decision to downgrade the UK’s sovereign rating outlook from “stable” to “negative” five days after a similar decision by S&P Global.
Oil prices are stabilizing after three straight bull sessions in which Brent crude recovered to mid-September levels after OPEC+ countries agreed to cut overall production by around two million barrels per day. starting next month.
Brent lost 0.06% to $93.31 a barrel and US light crude (West Texas Intermediate, WTI) lost 0.14% to $87.64.
(Written by Marc Angrand, edited by Kate Entringer)