by CORENTIN CHAPRON
PARIS (Reuters) – Wall Street is expected to rise at the opening on Friday, while European stock markets are mixed at mid-session in a context of caution before the publication of data on inflation in the United States against a backdrop of multiple company publications and oil rebound.
Futures on New York indices suggest Wall Street opening in the green, with the Dow Jones rising 0.16%, while the Standard & Poor’s 500 takes 0.52% and the Nasdaq 0.94%.
In Paris, the CAC 40 declined by 0.6% to 6,847.72 points around 10:37 GMT, after a salvo of warning on the results, against an increase of 0.17% for the FTSE in London and of 0.4% for the Dax in Frankfurt.
The pan-European FTSEurofirst 300 index is stable, like the EuroStoxx 50 and the Stoxx 600.
Markets are hesitant before the publication of PCE inflation in the United States at 12:30 GMT.
The indicator on which the Federal Reserve bases its monetary policy is expected to decline slightly, but any upward surprise could revive market concerns about the level of monetary restriction that the central bank will have to achieve and then maintain to bring inflation back to his target.
The Fed will make its decision on rates on November 1, and the markets are counting on a status quo on this occasion.
On Thursday, the European Central Bank chose not to raise its rates again, but the institution warned that it did not rule out further increases in the long term, and that any discussion on an easing of monetary conditions was premature.
The numerous results also help to liven up the indices: futures contracts on the Nasdaq thus benefit from the good results from Amazon published on Thursday.
The rise in oil prices, against a backdrop of geopolitical uncertainty, is nevertheless capping gains, reigniting concerns about inflationary pressures.
VALUES TO FOLLOW IN WALL STREET
Amazon.com says it sees strength in its cloud computing business, and expects quarterly revenue between $160 billion and $167 billion, the midpoint of which is nonetheless below the consensus of $166.6 billion.
VALUES TO FOLLOW IN EUROPE
Sanofi fell 16.43% after abandoning its operating margin target for 2025, as part of a plan to list its Consumer Health business and increase research and development spending.
Air France-KLM is stable after hitting a historic low, the group having reported a record profit in the third quarter which, however, narrowly missed analysts’ expectations.
Rémy Cointreau lost 10.9% after lowering its outlook for its 2023-2024 financial year on Friday due to the deterioration of market conditions, particularly in the United States, which weighed on its turnover in the second quarter.
Valeo climbs 5.1%, as strikes by the United States auto workers’ union (UAW) have had a negligible impact on the French automotive supplier’s third-quarter outlook and results.
Ubisoft advances 8.13%, supported by revenue above expectations for the second quarter and after the group maintained its outlook for the fiscal year.
Fnac Darty fell by 2.7% on Friday after having lost up to 14% earlier in the session, after the downward revision of its current operating profit forecast for 2023, the specialized distributor citing “a degraded consumption context”.
OIL
Crude prices jumped after two US planes struck facilities in Syria used by Iran’s elite Revolutionary Guard Corps and groups it supports.
Brent strengthened by 2.18% to $89.85 per barrel, American light crude (West Texas Intermediate, WTI) by 2.1% to $84.96.
RATE
Yields are little changed in a wait-and-see context before the publication of inflation data in the United States.
The yield on the ten-year Treasury increased by 1.7 bps to 4.8621%, while the two-year yield remained unchanged at 5.0478%.
The German ten-year yield erodes by 2.1 bp to 2.83%, that of the two-year rate by 1.9 bp to 3.111%.
CHANGES
Same calm on the currency side where currency traders are awaiting the publication of American indicators.
The dollar is unchanged against a basket of reference currencies, the euro is stable at $1.0556 and the pound sterling remains at $1.2122.
(Written by Corentin Chappron, edited by Blandine Hénault)
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