by Claude Chendjou

PARIS (Reuters) – A rebound of the main European stock markets is expected on Thursday at the opening after the adoption by the House of Representatives of the agreement on the American debt and the surprise recovery of manufacturing activity in China in May.

According to the first indications available, the Parisian CAC 40 should gain 0.8% at the opening, the Dax in Frankfurt 0.6% and the FTSE 100 in London 0.34%. The EuroStoxx 50 index is expected to rise by 0.71%.

The US House of Representatives on Wednesday approved a bipartisan bill to temporarily suspend the US debt ceiling until 2025, despite opposition from some ultra-conservative lawmakers. It is now up to the Senate to vote on the text and send it to President Joe Biden for promulgation by Monday, which would avoid a default in payment by the leading economic power.

“This passed with a very large majority, so there’s enough bipartisan support that it’s really hard to believe this won’t be even more of a formality in the Senate,” said Ray Attrill, chief strategy officer. foreign exchange at National Australia Bank.

In China, manufacturing activity rebounded unexpectedly in May with an index of 50.9 against 49.5 in April, the Caixin/S&P Global survey published on Thursday showed.

Indicators on manufacturing activity in Europe and the United States are also scheduled for the day, as well as inflation figures in the euro zone and a survey of the American job market, all of which could make it possible to assess the evolution of the economic situation and the trajectory of interest rates.

AT WALL STREET

The New York Stock Exchange ended down on Wednesday, weighed down in particular by an employment indicator which raised fears that the Federal Reserve (Fed) will further increase its interest rates in June.

The Dow Jones index fell 0.41%, or 134.51 points, to 32,908.27 points.

The broader S&P-500 lost 25.69 points, or 0.61%, to 4,179.83 points.

The Nasdaq Composite fell for its part by 82.14 points (-0.63%) to 12,935.29 points.

Data released today by the Labor Department showed the number of job openings rose in April, underscoring the resilience of the US labor market, raising fears that the Federal Reserve could be forced to continue its monetary tightening.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index advanced 0.66% to 31,092.32 points and the Topix, larger, took 0.83% to 2,148.32 points as the closing approached.

The MSCI index comprising stocks from Asia and the Pacific (excluding Japan) rebounded 0.45% after hitting a low the previous day since March 22.

In China, the Shanghai SSE Composite advanced 0.51% and the CSI 300 gained 0.79%.

EXCHANGES/RATES

The dollar rose slightly (+0.13%) on Thursday against a basket of benchmark currencies after falling the day before in session to its lowest since May 25.

The euro is displayed at 1.0679 dollars (-0.08%).

The yield on ten-year US bonds took nearly three basis points to 3.6694%, after falling the day before to 3.6140%, the lowest since May 18.

OIL

The oil market rebounds after two sessions of decline, also benefiting from the relief on the American debt: Brent takes 0.5% to 72.96 dollars a barrel and American light crude (West Texas Intermediate, WTI) 0.41% at $68.37.

(Written by Claude Chendjou, edited by Kate Entringer)

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