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by Claude Chendjou

PARIS (Reuters) – Major European stocks are expected to open on Friday in the green in the wake of Wall Street’s advance the day before, but gains are expected to be limited by typical investor caution within a week of trading. meetings of three major central banks.

Futures contracts on indices suggest an increase of 0.1% for the CAC 40 in Paris, 0.09% for the Dax in Frankfurt, 0.15% for the FTSE 100 in London and 0.14% for the EuroStoxx 50.

The US Federal Reserve (Fed), European Central Bank (ECB) and Bank of Japan (BoJ) will deliver their monetary policy decision next week and markets are increasingly pricing in a Fed rate pause despite the unexpected increases in the cost of credit made this week by the central bank of Australia (RBA) and the Bank of Canada (BoC).

This sent the New York Stock Exchange’s S&P-500 index into a bull market after gaining more than 20% from its October lows. At the same time, the Vix volatility index, a barometer of fear, fell below 15 points, reaching a low for the year at 13.53 points.

AT WALL STREET

The New York Stock Exchange ended higher on Thursday, driven by technology stocks and volatility returned to unusually low levels.

The Dow Jones Industrial Average gained 0.50 percent, or 168.59 points, to 33,833.61 points.

The wider Standard & Poor’s 500 gained 26.41 points, or 0.62% to 4,293.93 points.

The Nasdaq Composite advanced for its part by 133.63 points (1.02%) to 13,238.524.

At stocks, Amazon gained 2.43% after Wells Fargo raised its recommendation on the stock while Nvidia took 2.76%.

Against the trend, GameStop plunged 17.89% after posting a higher-than-expected quarterly loss.

IN ASIA

As the close approaches, at the Tokyo Stock Exchange, the Nikkei index rebounded 1.79% to 32,208 points, returning to its 33-year record. The wider Topix takes 1.46% to 2,223.6 points

The MSCI index comprising stocks from Asia and the Pacific (excluding Japan) rose by 0.6%, very close to its peak of February 16.

In China, the Shanghai SSE Composite gained 0.03%, but the CSI 300 lost 0.13%.

In today’s statistics, producer prices in China fell faster than expected in May, with the PPI index down 4.6%, due to weak global demand. The consumer price index (CPI) in China also came out below expectations last month, with an increase limited to 0.2% on an annual basis.

EXCHANGES/RATES

The dollar is stable (+0.05%) on Friday against a basket of reference currencies after having fallen the day before by 0.7% in reaction to the figures for weekly jobless claims in the United States, which emerged at a peak of more a year and a half.

The euro rose to 1.0779 dollars (-0.02%).

On the bond market, the yield on ten-year US Treasury bills was also almost stable on Friday at 3.7317%, after losing seven basis points the day before.

OIL

The oil market retreats and is heading for a second consecutive week in the red in a context of fear for global demand and skepticism about a possible agreement between Iran and the United States on the nuclear file.

Brent fell 0.79% to 75.36 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.81% to 70.71 dollars.

(Written by Claude Chendjou, edited by Tangi Salaün)

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