PARIS (Reuters) – Major European stocks are expected to fall on Friday at the open, as the impact on monetary policy of encouraging inflation data in the United States was mitigated by cautious comments from the President of the Federal Reserve from San Francisco.
The first indications available indicate that the Parisian CAC 40 would yield 0.45% at the opening. Futures contracts suggest a decline of 0.58% for the FTSE in London, a decline of 0.45% for the Dax in Frankfurt, and 0.55% for the EuroStoxx 50.
US inflation reached 0.2% over one month in July, in line with market expectations, while core inflation slowed.
“Underlying inflation growth continues to slow, and we wouldn’t be surprised to see a weaker figure in August with declines in wholesale used car prices,” said Stephen Juneau, an economist at Bank of America.
“Month-to-month inflation will no doubt be volatile, but the disinflationary trend is not a sham.”
Investors are betting the latest inflation numbers will convince the Federal Reserve not to hike rates again in September.
However, Mary Daly, the president of the Federal Reserve of San Francisco, explained a few hours later to Yahoo Finance that “there is still work to be done”.
VALUES TO FOLLOW:
AT WALL STREET
New York ended in the green on Thursday as investors hoped the Federal Reserve would refrain from raising rates during its next monetary policy session.
The Dow Jones Industrial Average rose 0.15%, or 52.79 points, to 35,176.15 points, the broader S&P 500 rose 1.12 points, or 0.03%, to 4,468.83 points. , and the Nasdaq Composite advanced 15.97 points (0.12%) to 13,737.99 points.
IN ASIA
Japanese markets are closed on “Mountain Day”.
Chinese markets retreated, finding the latest support measures disappointing as data released this week confirmed the slowing economy. The SSE Composite of Shanghai fell by 1.16%, the CSI 300 by 1.4% and the Hong Kong Hang Seng index by 0.57%.
CHANGES
The dollar strengthens slightly after the comments of the president of the San Francisco Fed.
The dollar edged up 0.06% against a basket of benchmark currencies, with the euro advancing 0.08% to $1.0988, while the pound sterling rose 0.05% to $1.2681. In Asia , the yen was stable at 144.71 yen to the dollar, while the Australian dollar rose 0.11% to 0.652 dollars.
RATE
US yields rose slightly after inflation data and US deficit data showed it was twice as high in July as expected, at $221 billion.
The ten-year Treasury yield rose 3.9 basis points to 4.1211%, while the two-year rate rose 3.1 bp to 4.8522%. The German ten-year yield rose 4.7 bp to 2.576%, while that of the two-year rate rose 3 bp to 3.001%.
OIL
Oil is down slightly as investors weigh upbeat figures from OPEC, which on Thursday said it expects demand growth of 2.25 million barrels a day in 2024, and figures from the Chinese inflation, which send a worrying signal about the state of crude oil consumption in the world’s second largest economy.
Brent crude fell 0.19% to $86.24 a barrel, after hitting its highest since January in the previous session, with US light crude (West Texas Intermediate, WTI) falling 0.17% to 82 $.68 after touching its high for the year during the previous session.
(edited by Jean-Stéphane Brosse)
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