by Claude Chendjou

PARIS (Reuters) – The main European stock markets are expected to rise slightly on Friday the day after a seesaw session marked by questions about the economic situation, interest rates and mixed results published by companies.

Futures contracts on indices suggest an increase of 0.35% for the CAC 40 in Paris, 0.27% for the Dax in Frankfurt, 0.34% for the FTSE 100 in London and 0.44% for the EuroStoxx 50.

The session will again be marked by macroeconomic indicators with, in particular, at 06:45 GMT the final figures for inflation in France and at 14:00 GMR an index of American consumer confidence. The first estimate of the UK’s gross domestic product (GDP) points to growth of 0.1% in the first quarter, data showed on Friday.

The previous two sessions saw the release of US inflation indicators which showed signs of slowing year-on-year price growth as the US Federal Reserve (Fed) hinted last week a pause in the rise in its interest rates. The money markets are currently banking on a status quo on the Fed’s rates in June with a high probability, then a drop of around 75 to 80 points during the course of the year. Christopher Wong, currency strategist at OCBC, however, notes a strong disconnect between market expectations and those of the Fed on rates.

The US debt ceiling also continues to raise questions, with the International Monetary Fund (IMF) saying on Thursday that a default would have “very serious repercussions” on the global economy, including higher debt costs. loan.

Publications of major companies in Europe such as Societe Generale, which did better than expected, Scor and Allianz should also animate the discussions. The banking sector will be one to watch in this respect in the aftermath of the PacWest stock market rout, which revived fears about American regional banks.

VALUES TO FOLLOW IN EUROPE:

AT WALL STREET

The New York Stock Exchange ended in disarray on Thursday, penalized by the decline of Walt Disney and several regional banks, the Nasdaq, carried by Alphabet, being the only index to finish in the green.

The Dow Jones index fell -0.66%, or 221.82 points, to 33,309.51 points.

The broader S&P-500 lost 7.02 points, or 0.17%, to 4,130.62 points.

The Nasdaq Composite advanced for its part by 22.07 points (0.18%) to 12,328.51 points.

PacWest Bancorp plunged nearly 23% after announcing withdrawals of money by its customers last week, dragging other regional banks in its wake.

Walt Disney fell 8.7% after the publication of its quarterly results on Wednesday evening.

Tesla for its part rose 2.1% after Elon Musk announced that it had found a new general manager to replace him at the head of Twitter.

Alphabet advanced 4.3%, still benefiting from announcements of its new products based on artificial intelligence.

IN ASIA

At the Tokyo Stock Exchange, the Nikkei index gained 0.9% to 29,388.3 points, while the broader Topix rose 0.64% to 2,096.39 points at the close.

The MSCI index grouping stocks from Asia and the Pacific (excluding Japan) lost 0.6% as the latest Chinese statistics show a slow economic recovery despite the lifting of health restrictions linked to COVID-19.

In China, the Shanghai SSE Composite fell 0.98% and the CSI 300 lost 1.18%.

RATE

Yields on ten-year and two-year US Treasuries fell slightly to 3.3861% and 3.8889% respectively, on signs of easing inflation in the United States.

The ten-year German Bund yield rose slightly, two basis points, to 2.237% in early trade.

CHANGES

The dollar is stable (-0.04%) against a basket of benchmark currencies, trying to hold on to its one-week peak. Over the week as a whole, the greenback is gaining 0.7% at this stage, which would allow it to interrupt a cycle of two consecutive weekly declines.

The euro is displayed at 1.0928 dollars (+0.13%).

The pound rose 0.06% to 1.2517 dollars the day after the Bank of England (BoE) decided to raise its key rate by a quarter of a point to 4.5%.

OIL

Oil prices are heading for a fourth week in a row in the red, weighed down by fears over Chinese and American demand.

Brent lost 0.68% to 74.47 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.61% to 70.44 dollars.

Both oil benchmarks are expected to drop around 1% this week, which would mark the longest period of weekly declines since November 2021.

(Written by Claude Chendjou, edited by Nicolas Delame)

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