PARIS (Reuters) – The main European stock markets are expected to rise slightly at the opening on Thursday, in a context of caution before the publication of highly anticipated economic indicators in the United States.
The first indications available indicate that the Parisian CAC 40 would advance by 0.58% at the opening. Futures on the FTSE in London suggest a rise of 0.38%, compared to 0.48% for the Dax in Frankfurt, and 0.58% for the EuroStoxx 50.
European indices are moving cautiously, while the US inflation indicator for July is expected at 12:30 GMT.
The consensus of analysts polled by Reuters is for core inflation flat month-on-month at 4.8%, a scenario that would bolster markets on hopes that the Federal Reserve’s monetary policy is sufficiently restrictive to bring inflation back to its target.
However, an upside surprise cannot be ruled out, as the US labor markets continue to show strong resistance, which is supporting wages and rising prices.
Jobless claims for the week to August 5 are also expected at 12:30 GMT, up slightly from the previous week.
AT WALL STREET
New York ended lower on Wednesday, the day after a report that Americans used the credit capabilities of their payment cards to an unprecedented extent in the last quarter, and on the eve of the release of data on inflation in the United States.
The Dow Jones index fell 0.54%, or 191.13 points, to 35,123.36 points, the broader S&P 500 fell 31.67 points, or 0.70%, to 4,467.71 points, and the Nasdaq Composite dropped 165.93 points (1.20%) to 13,718.40 points.
IN ASIA
In Tokyo, the Japanese indices are progressing moderately, supported by good quarterly results. The Nikkei gained 0.15% to 32,240.11 points, the Topix rose 0.74% to 2,299.49 points. Honda Motor gained 5.62% after rising profits last quarter.
Market sentiment remains subdued in China following the inflation release in July, with data showing the world’s second-largest economy tumbled into deflation last month. The SSE Composite of Shanghai fell by 0.26%, the CSI 300 by 0.49% and the Hong Kong Hang Seng index by 0.95%.
CHANGES
Currency markets remain wait-and-see before the release of inflation data.
The dollar is stable against a basket of benchmark currencies, the euro nibbling 0.05% to 1.0978 dollar, while the pound sterling remains at 1.2715 dollar.
In Asia, the yen fell 0.22% to 144.03 yen per dollar, while the Australian dollar advanced 0.20% to 0.6539 dollars.
RATE
US bond markets remain stable before the release of indicators in the United States.
The ten-year Treasury yield rose 2.1bp to 4.0281%, while the two-year rate rose 1.6bp to 4.8185%.
OIL
Oil is eroding slightly after hitting multi-month record prices on Wednesday, with markets positioning ahead of US data that will shed light on the state of demand.
Brent crude fell 0.10% to $87.46 a barrel, after hitting its highest since January in the previous session, with US light crude (West Texas Intermediate, WTI) falling 0.08% to 84 $.33 after touching its highest since November 2022 during the previous session.
(Writing by Corentin Chapron, editing by Kate Entringer)
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