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.

Futures contracts point to a gain of 0.53% for the Paris CAC 40, 0.6% for the Dax in Frankfurt, 0.32% for the FTSE in London and 0.54% 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 ASIA

In Japan, the Nikkei (+1.21%) ended the day at its highest closing level since 1990.

SoftBank, the biggest gainer in the index, jumped 5.4% as analysts expect its chip design business to benefit from the surge in investment in artificial intelligence.

China’s CSI 300 and SSE Composite indexes rose 1.38% and 0.79% respectively as the Caixin/Markit survey of purchasing managers released on Thursday showed a rebound in manufacturing activity.

EXCHANGES/RATES

The dollar lost 0.13% against other major international currencies and has so far posted its worst weekly performance since mid-January, with speculation on the Fed’s status quo.

The euro is trading around 1.0773 dollars.

On the bond market, the yield on ten-year Treasuries rose slightly, around 3.616%. Its German equivalent gained a basis point in early trading at 2.26%.

OIL

Crude futures gain 1%, supported by the passage of the US debt bill in Congress.

Brent is at $75.03 a barrel and US light crude (West Texas Intermediate, WTI) at $70.79.

(edited by Nicolas Delame)

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