by Laetitia Volga

PARIS (Reuters) – The main European stock markets should rebound on Friday after the losses posted at the end of the day before and speculation on a possible pause in the hike in interest rates by the Federal Reserve.

The first indications available point to an increase of 0.4% for the Parisian CAC 40, 0.37% for the Dax in Frankfurt, 0.35% for the FTSE in London and 0.42% for the EuroStoxx 50.

All ended down Thursday, from 0.5% to 1.1%, the CAC 40 posting its lowest level in a month. Wall Street fell in the same proportions, shaken by new fears concerning the banks.

The renewed tension in the sector has some players hoping that the Fed’s rate hike cycle may be coming to an end. Markets expect the Fed to opt for a status quo at its next meeting before initiating rate cuts from July, according to the CME’s FedWatch Barometer.

Caution could however limit risk-taking pending the employment statistics in the United States in April, which are due to be published at 12:30 GMT.

The Reuters consensus expects a slowdown in job creation to 180,000, an unemployment rate of 3.6% and an increase of 4.2% over one year in the average hourly wage, unchanged from one month on the month. other.

An easing of the labor market “is the last missing piece of the puzzle needed to open the door to a real Fed pivot [et elle] is falling into place,” Deutsche Bank said in a note.

SEE ALSO: GRAPHS-World tour of the monetary policy of the major central banks

VALUES TO FOLLOW:

AT WALL STREET

Wall Street ended lower on Thursday as PacWest’s decision to explore strategic options, including a sell-off, heightened fears about the health of U.S. banks.

The Dow Jones index fell 0.86%, or 286.5 points, to 33,127.74 points, the S&P-500 lost 29.53 points, or 0.72%, to 4,061.22 points and the Nasdaq Composite fell 58.93 points (-0.49%) to 11,966.40 points.

PacWest fell 51%. Western Alliance Bancorp also tumbled (-39%) and its listing was suspended several times despite denying information from the Financial Times that it was considering the possibility of a sale.

Of the 11 sector indices of the S&P-500, nine fell, led by finance (-1.29%).

Among the biggest banks, JPMorgan lost 1.4% and Wells Fargo 4.25%.

After the close, Apple posted better-than-expected quarterly results thanks to iPhone sales and notable inroads in India and other markets. The title of the first American company in terms of valuation took 2% in after-hours trading.

The “futures” on indices currently suggest an increase of 0.23% to 0.49% at the opening.

IN ASIA

The Hong Kong Stock Exchange (+0.59%) rises after the release of data showed that services activity in China rose for the fourth consecutive month in April, while mainland Chinese stocks are in the red, plummeted by companies linked to artificial intelligence.

The CSI300 fell by 0.55% and the Shanghai Composite Index by 0.73%.

CHANGES

The yen (-0.26%) continues to benefit from its safe haven status with the turmoil in the US banking sector. These are weighing on the greenback, down 0.24% against a basket of major currencies. Currency traders are also anticipating Fed rate cuts later this year.

The euro climbed to $1.1042 after the European Central Bank hinted Thursday that monetary tightening was not over.

“Christine Lagarde (the President of the ECB) was ‘hawkish’ during her press conference, but I think the financial markets have not really bought into her view on further rate hikes in the coming months,” said Carol Kong of Commonwealth Bank of Australia.

OIL

Oil prices are up but are expected to fall sharply over the week in response to concerns about the weakening US economy and Chinese demand.

Brent rose 0.92% to 73.17 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.88% to 69.16 dollars.

Over the week, Brent is currently down 8.5% and WTI 10.3%.

(Editing by Kate Entringer)

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