by Blandine Henault

PARIS (Reuters) – The main European stock markets are expected to rise on Friday at the opening, in the wake of Wall Street and Asia and before a series of highly anticipated indicators.

According to the first indications available, the Parisian CAC 40 could gain 0.44% at the opening. Futures contracts are signaling a rise of 0.38% for the Dax in Frankfurt, 0.33% for the FTSE in London and 0.44% for the EuroStoxx 50.

Caution has dominated since the beginning of the week on the equity markets against a backdrop of renewed concerns for banks after the results of First Republic Bank, fears about the American economy and publications of mixed corporate results, except for the American tech.

GDP growth in the United States slowed more than expected in the first quarter, the first estimate showed on Thursday, and investors will follow the data for the euro zone on Friday.

Inflation figures in Germany as well as the PCE index in the United States, the Federal Reserve’s preferred inflation indicator, will also be closely watched ahead of the Fed and European Central Bank meetings this week. next.

New results from companies are expected, including EDF, Amundi SA, Remy Cointreau and Electrolux.

AT WALL STREET

The New York Stock Exchange ended sharply higher on Thursday as the results and forecasts released the day before by the technology giant Meta Platforms, parent company of Facebook, relegated fears of a slowdown in the American economy to the background.

The Dow Jones index gained 1.57% to 33,826.16 points, the broader S&P-500 gained 1.96% to 4,135.35 points and the Nasdaq Composite advanced 2.43% at 12,142.24 points.

While the Nasdaq recorded its largest daily gain since March 16, the S&P-500 and the Dow Jones ended with an unprecedented percentage increase since January 6.

Meta, which reported a current-quarter revenue forecast that beat Wall Street expectations, rose 13.9% to a peak in more than a year.

IN ASIA

The Tokyo Stock Exchange increased its gains and gained 0.91% after the Bank of Japan’s decision to maintain an ultra-accommodative monetary policy. It also benefited from a series of good corporate results and Wall Street gains the day before.

The Japanese central bank unsurprisingly decided to maintain the short-term rate target at -0.1% and to contain the yield on ten-year government bonds around zero, which caused Japanese banks to retreat (- 1%).

The BoJ, however, changed its forecast, removing any reference to the need to keep interest rates at their “current or lower levels”, which could suggest that its new governor Kazuo Ueda is preparing the ground to phase out the program. revival decided by his predecessor.

In China, equity indices also rose before the Labor Day holiday period.

RATES/EXCHANGES

The yen fell 0.7% against the dollar, penalized by the BoJ’s decision.

The greenback gained 0.2% against a basket of benchmark currencies but remains on course for a second consecutive month of decline, after having already lost 2.3% in March.

In the bond markets, the yield on ten-year Treasuries gave way after posting its biggest daily gain since March on Thursday, driven by fears around the debt ceiling in the United States.

It returned to 3.511% after a gain of almost ten basis points the day before.

OIL

Crude prices rose on Friday but are on course for a second weekly decline as disappointing US economic data and uncertainties over central bank monetary tightening weigh on demand prospects.

The barrel of Brent from the North Sea gained 0.8% to 78.99 dollars and that of American light crude (WT) advanced by 0.63% to 75.23 dollars.

(edited by Kate Entringer)

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