PARIS (Reuters) – Wall Street is expected to fall on Friday, while European stock markets hesitate, the economic outlook and the trajectories of rates worrying investors.

New York index futures suggest a declining Wall Street opening, with the Dow Jones losing 0.13%, versus 0.14% for the Standard & Poor’s 500 and 0.16% for the Nasdaq flat.

In Paris, the CAC 40 stagnated at 7,192.78 points around 10:44 GMT, against a drop of 0.23% for the FTSE in London and 0.32% for the Dax in Frankfurt.

The pan-European FTSEurofirst 300 index fell 0.35%, against 0.25% for the EuroStoxx 50 and 0.13% for the Stoxx 600.

While the latest indicators showed the resilience of the US economy and supported the scenario of a soft landing, European and Chinese data raise fears of a stronger than expected slowdown in activity.

However, inflation in the euro zone remains higher than the objective of the European Central Bank (ECB), despite 425 points of monetary tightening in one year, posing a dilemma for the governors of the institution between activity and price dynamics.

“The question that continues to arise is that of the course of the end of the cycle of monetary tightening: was the tightening sufficient for the imbalances between supply and demand to allow inflationary pressures to subside in order to bring back the inflation towards the central banks’ targets? Wasn’t it too strong?”, summarize the LBPAM strategists.

The ECB meeting scheduled for Thursday will help observers sharpen their economic outlook, as markets are divided on the central bank’s decision. The Federal Reserve’s decision is expected the following week as investors believe the central bank will pause rate hikes, which are expected to rise another 25 basis points before peaking by the end of the week. ‘year.

THE VALUES TO FOLLOW IN WALL STREET

Restrictions on the use of Apple iPhones in China by civil servants have been extended to local governments, the Nikkei reported on Friday.

Data from the China Passenger Car Association (CPCA) released on Friday shows Tesla’s market share nearly doubled in August from July on the back of further price cuts and subsidies.

VALUES TO FOLLOW IN EUROPE

On the stock market, the European new technologies sector declined by 0.14%, after the announcement that China will restrict the use of iPhones.

Casino advances 2.87% after taking stock of the grace periods in the repayment of its obligations, while the title fell at the start of the session when Euronext announced Thursday the exclusion of the distributor in difficulty from the SBF 120 index from September 18.

Computacenter jumped 15.96%, topping the Stoxx 600, after the IT services provider said its half-year adjusted pretax profit rose 8.8%.

RATE

Risk aversion is benefiting sovereign securities, whose yields are eroding.

The German ten-year yield fell 1.8 bp to 2.60%, while that of the two-year rate lost 2 bp to 3.068%.

The ten-year Treasury yield fell 1.8bp to 4.2443%, versus 1.5bp to 4.9401% for the two-year.

CHANGES

The dollar is eroding 0.04% against a basket of benchmark currencies, but is still expected to register its eighth weekly rise, the longest streak since 2014.

The euro is stable at 1.0695 dollars and the pound sterling remains at 1.247 dollars.

OIL

Despite macroeconomic concerns, the announcement of the extension of Saudi and Russian production cuts until the end of the year supported the barrel.

Brent rose 0.49% to 90.36 dollars a barrel, US light crude (West Texas Intermediate, WTI) nibbling 0.43% to 87.24 dollars.

(Written by Corentin Chapron, edited by Tangi Salaün)

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