by Laetitia Volga
PARIS (Reuters) – The main European stock markets are expected to rise on Friday, buoyed by the adoption by the United States Senate of the text on the debt ceiling and the hope that the Federal Reserve will pause in its rise in its rate.
The first indications available suggest a gain of 0.45% for the Parisian CAC 40, 0.5% for the Dax in Frankfurt, 0.23% for the FTSE in London and 0.47% for the EuroStoxx 50.
The tense episode over the raising of the US debt ceiling that has dominated markets in recent weeks is now considered over after the US Senate gave the green light to the bipartisan bill, which avoids a default of payment.
The focus is again on economic and monetary policy developments.
Philadelphia Fed President Patrick Harker said on Thursday evening that “it (was) time to at least hit the pause button for a meeting and see how it goes”, referring to the meeting of the central bank in two weeks.
Markets estimate there is a 20% chance the institution will raise rates by a quarter point on June 14, up from 50% a week earlier, according to CME tool FedWatch.
The publication at 12:30 GMT of the employment report in the United States in May should make it possible to see more clearly the intentions regarding the Fed. Economists polled by Reuters expect a slowdown in job creation to 190,000 after 253,000, an unemployment rate of 3.5% and an increase of 0.3% in the average hourly wage compared to April.
VALUES TO FOLLOW:
AT WALL STREET
On Thursday, the New York Stock Exchange ended up 0.47% to 1.28% and the Nasdaq and S&P 500 indexes hit nine-month highs at the close.
In values, Salesforce (-4.7%) weighed on the Dow Jones after reporting its slowest quarterly revenue growth in 13 years.
Goldman Sachs fell 2.31% after announcing it planned further job cuts due to the economic climate.
In Japan, the Nikkei is up 1.04%.
China’s CSI 300 and SSE Composite indexes rose 1.33% and 0.76% respectively as the Caixin/Markit survey of purchasing managers released on Thursday showed a rebound in manufacturing activity.
The dollar is practically stable against the other major international currencies (-0.05%) but it is currently posting its worst weekly performance since mid-January, with speculation on the status quo of the Fed.
The euro is trading around 1.0762 dollars.
On the bond market, the yield on ten-year Treasuries rose slightly, around 3.616%.
Crude futures are in good shape, supported by the passage of the US debt bill in Congress.
Brent gained 0.46% to $74.62 a barrel and US light crude (West Texas Intermediate, WTI) to $70.42.
(edited by Nicolas Delame)
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