PARIS (Reuters) – The main European stock markets fell again on Friday morning, the resistance of the American employment market having convinced the markets that the central banks will again raise their rates to fight against inflation. In Paris, the CAC 40 lost 0.25% to 7,066.85 points around 07:30 GMT. In London, the FTSE 100 fell 0.53% and in Frankfurt, the Dax lost 0.30%. The EuroStoxx 50 index fell 0.42%, the FTSEurofirst 300 fell 0.35% and the Stoxx 600 dropped 0.37%. Futures on Wall Street point to an opening down 0.1% for the Dow Jones, 0.16% for the S&P 500 and 0.26% for the Nasdaq.
The strength of US employment, evidenced by the surprisingly strong results of the monthly ADP survey, has prompted investors to revise their monetary policy expectations upwards, as the resilience of economies complicates the fight against inflation. by central banks. Markets now expect the Fed and the European Central Bank (ECB) to raise rates higher.
“Markets are pricing a 92% chance of an ECB hike in July, with a further hike by October, while December 2023 swaps are forecasting a rate at 3.945%, up 7.5 points one-week basis and close to the 4.03% level seen just before the March banking crisis,” said Jim Reid, strategist at Deutsche Bank, in his daily letter sent to clients.
The markets also remain cautious ahead of the publication of official US employment data, expected at 12:30 GMT.
The number of non-agricultural job creations has been systematically underestimated by the consensus for 14 months, recalls Deutsche Bank.
(Report Corentin Chapron, edited by Blandine Hénault)
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