by Laetitia Volga
PARIS (Reuters) – Wall Street is expected to rise and European stock markets rose mid-session on Friday, supported by cheap buying after the drop in recent days.
Futures on New York indices signal an increase of 0.43% for the Dow Jones, 0.42% for the Standard & Poor’s-500 and 0.23% for the Nasdaq.
In Paris, the CAC 40 gained 0.83% to 7,443.27 around 11:00 GMT, returning to its level at the start of the week thanks to the rise in the luxury sector.
In Frankfurt, the Dax advances by 0.51% and in London, the FTSE by 0.35%.
The pan-European FTSEurofirst 300 index gained 0.58%, the euro zone’s EuroStoxx 50 rose by 0.53% and the Stoxx 600 by 0.56%. The latter had lost 0.71% over the three previous sessions and is currently showing an increase of 0.2% over the whole week.
This renewed interest in equities follows a series of statistics showing that the slowdown in inflation and the labor market continues in the United States, which could encourage the Federal Reserve to end its tightening cycle soon. monetary.
For the time being, this outlook trumps concerns about China’s fragile economic recovery, regional banks in the US and the US debt ceiling.
On this issue, a meeting scheduled for Friday between President Joe Biden and the main opposition leaders in Congress has been postponed until early next week.
To follow at 2:00 p.m. GMT the publication of the Michigan index, which could help determine whether the recent banking stress is affecting the morale of American households. WALL STREET VALUES TO FOLLOW
Tesla was up 1.4% in deals before the opening of Wall Street after Elon Musk said he had found a new chief executive for Twitter that would allow him to refocus on the automaker.
VALUES IN EUROPE
The European consumer goods index (+0.86%) posted one of the best performances of the day, thanks to Richemont (+4.82%) which recorded an all-time high after publishing sales above expectations thanks to China.
Other luxury companies like Hermès, Burberry, LVMH and Kering gained 0.8% to 1.12%.
Societe Generale takes 1.56%, the third French bank by market capitalization having reported quarterly results generally above expectations.
As for the SBF 120, Soitec fell 6.49% after JPMorgan’s move to “underweight”, JCDecaux lost 4.42% after forecasts deemed cautious by analysts, while the reinsurer Scor (+10.24% ) is at its highest for a year after having almost doubled its net profit in January-March.
CHANGES
The dollar is unchanged against other major currencies (+0.02%) but should register its best weekly performance since February, a rebound that traders explain by its status as a safe haven and a long period of weakness.
The dollar index has indeed fallen in seven of the last nine weeks. The marked slowdown in US inflation was a key factor, as were better-than-expected data from Europe, which pushed the euro higher recently.
The pound rose slightly as today’s data showed the UK economy grew 0.1% in the first quarter, in line with expectations.
RATE
Eurozone bond yields remain trending higher on both sides of the Atlantic but are expected to register a weekly pullback, with Fed dovish expectations in June.
The ten-year German is up three basis points to 2.252%. Its American equivalent takes a little more than a point to 3.4121%.
OIL
On the oil market, Brent gained 0.33% to 75.23 dollars a barrel and American light crude (West Texas Intermediate, WTI) 0.44% to 71.18 dollars.
(Laetitia Volga, edited by Jean-Stéphane Brosse)
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