The main European stock markets are expected to fall at the opening on Thursday, the rally triggered by the latest central bank decisions showing some signs of running out of steam before the publication of several indicators.
The first available indications indicate that the Parisian CAC 40 would be down 0.57% at the opening. Futures contracts on the FTSE in London suggest a drop at the opening of 0.59%, compared to 0.53% for the Dax in Frankfurt, and 0.52% for the EuroStoxx 50.
Risk appetite is starting to erode, after markets rose sharply over the past week following the Federal Reserve’s latest decision, which gave investors hope of an imminent rate cut.
However, a wait-and-see attitude remains ahead of many indicators, which could qualify these expectations. On Thursday, the business climate in France will be published at 07:45 GMT, and should show a slight decline. The consumer confidence index and producer prices in France will be published on Friday, as well as British GDP for the third quarter.
In the United States, investors will await weekly unemployment claims on Thursday at 1:30 p.m. GMT, while the strength of American job markets has been one of the main factors in the persistence of inflation across the Atlantic. Final third-quarter GDP and the Philly Fed activity index are also due at 1:30 p.m. GMT on Thursday.
PCE inflation, the main indicator of the week, will be released on Friday. This is the gauge of price momentum that the Federal Reserve relies on to assess its effectiveness in fulfilling its price stability mandate, and a downward or upward surprise could cause markets to reassess their rate cut projections for 2024.
A WALL STREET
The New York Stock Exchange ended sharply lower on Wednesday, at the conclusion of a long hesitant session, seeing the positive dynamic of previous days interrupted in the wake of reassuring comments from the American Federal Reserve (Fed) on interest rates. interest.
The Dow Jones index fell 1.27%, or 475.92 points, to 37,082 points. The broader S&P-500 lost 70.02 points, or 1.47%, to 4,698.35 points. The Nasdaq Composite fell 225.28 points (1.50%) to 14,777.94 points.
IN ASIA
The Tokyo Stock Exchange ended down Thursday, in the wake of Wall Street. The Nikkei index lost 1.59% to 33,140.47 points and the broader Topix lost 1.01% to 2,325.59 points.
Toyota lost 4.03%, after its small vehicle manufacturing division said it would halt all deliveries, with an independent report accusing it of falsifying its crash tests.
Chinese indices rebounded but remained close to their lowest level in five years, reached on Wednesday. The Shanghai SSE Composite gained 0.57%, the CSI 300 1.01%.
RATE
US yields are immobile in a wait-and-see environment.
The ten-year Treasury yield is stable at 3.8751% and remains close to its lowest since July.
The ten-year German Bund yield is stable at 1.9760%, its lowest level since March.
CHANGES
Foreign exchange markets are sluggish ahead of lots of data on Thursday and Friday.
The dollar declines by 0.06% against a basket of reference currencies, while the euro takes 0.06% to 1.0946 dollars, and the pound sterling is stable at 1.2635 dollars.
In Asia, the Australian dollar gained 0.21% to $0.6744.
OIL
Oil is hesitant after the US Energy Information Administration reported on Wednesday that oil inventories rose by 2.9 million barrels last week, compared to a consensus of a fall of 2.4 million.
Brent is stalling at $79.72 per barrel, American light crude (West Texas Intermediate, WTI) is hesitant at $74.20.
(Written by Corentin Chappron)
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