PARIS (Reuters) – The main European stock markets are expected to hesitate on Thursday at the opening, before the publication of key indicators on inflation and after data showing that activity has slowed again in China.

The first indications available indicate that the Parisian CAC 40 would nibble 0.10% at the opening. Futures on the FTSE in London and the EuroStoxx 50 suggest a stable open, against a rise of 0.13% for the Dax in Frankfurt. Among the many data published Thursday, inflation in the euro zone is expected for 09:00 GMT.

The indicator is all the more important as it will be the last inflation data for the Eurozone before the European Central Bank’s next monetary policy decision on September 14, and a figure that would surprise on the upside. could decide the central bank to act, while the markets are divided on the prospects of the meeting, the money markets estimating probable at 58% that the ECB raises its rates.

However, German and Spanish inflation data, published on Wednesday, surprised on the upside.

“The data (for Wednesday) was stronger than expected, and there are risks that this will be the case again when the inflation data is released on Thursday,” note economists at Nomura.

Also weighing on sentiment, China’s manufacturing PMI indicators released on Thursday contracted for the fifth month in a row, increasing pressure on Beijing to decide on new support measures.

Besides Eurozone inflation, PCE price momentum, one of the Federal Reserve’s favorite inflation indicators, is expected in the US at 14:30 GMT.

AT WALL STREET

The New York Stock Exchange ended higher on Wednesday after data released indicating a slowing U.S. economy, bolstering expectations of a September pause in the Fed’s rate hike campaign.

The Dow Jones index gained 0.11% to 34,890.24 points, the broader S&P-500 gained 0.38% to 4,514.87 points, and the Nasdaq Composite advanced 0.54. % at 14,019.31 points.

IN ASIA

Japanese markets are up slightly, driven by car manufacturers and the hope that the rate hike cycle is coming to an end in the United States, which is supporting growth stocks. The Nikkei took 0.6% to 32,512.26 points, the Topix rising 1.02% to 2,336.91 points.

Growth stocks, particularly those related to semiconductors, supported the Nikkei, Advantest and Tokyo Electron rising 1.83% and 1.27% respectively. Toyota advanced by 2.54% after record monthly sales, dragging the automotive sector in its wake, which rose by 1.48%.

Chinese indices are down as sentiment weakens after new activity indicators show that the contraction in the manufacturing sector continues. The Shanghai SSE Composite was down 0.61%, the CSI 300 by 0.61% and the Hong Kong Hang Seng index by 0.4%.

CHANGES

Foreign exchange markets are hesitant before key data for the trajectory of monetary policies expected on Thursday and Friday. The dollar is flat against a basket of benchmark currencies, with the euro eroding 0.08% to $1.0915, while the pound is stable at $1.2716.

In Asia, the yen strengthened 0.15% to 146.02 yen per dollar, close to its highest in one year, while the Australian dollar nibbled 0.06% to 0.648 dollar.

RATE

US yields are stable in a wait-and-see environment. The ten-year Treasury yield is stable at 4.114%, while the two-year rate remains at 4.8878%.

OIL

Crude is hesitating, worried about Chinese demand but cautious before the data on US household consumption expected at 12:30 GMT and which will shed light on the state of demand across the Atlantic.

Brent remains at 85.9 dollars a barrel, American light crude (West Texas Intermediate, WTI) is treading water at 81.64 dollars.

(Writing by Corentin Chapron, editing by Kate Entringer)

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