PARIS (Reuters) – The main European stock markets are expected to fall at the opening on Friday, before numerous data publications, the latest indications on the trajectory of developed economies in 2024 before the end of the year.
Futures contracts suggest an opening down 0.10% for the Parisian CAC 40, compared to 0.4% for the FTSE in London, 0.10% for the Dax in Frankfurt, and 0.15% for the EuroStoxx 50.
Markets are cautious ahead of a burst of indicators that could push them to reassess their economic outlook for 2024.
In France, producer prices and consumer confidence will be published at 07:45 GMT.
UK retail sales rebounded more strongly than expected, even as GDP contracted in the third quarter.
Investors will be particularly attentive to the publication of PCE inflation in the United States, the indicator of price dynamics on which the Federal Reserve relies to assess its price stability mandate, at 1:30 p.m. GMT. A surprise on the indicator could cause the markets to react suddenly, where liquidity is decreasing as the end-of-year holidays approach.
The University of Michigan Confidence Index is due at 1500 GMT.
The markets welcomed a series of encouraging data in the United States on Thursday: unemployment claims were up, GDP increased by 4.9% year-on-year in the third quarter, and the “Philly Fed” index fell more than expected in December, proof that the Fed’s rate hikes are cooling the American economy.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended higher on Thursday, erasing some of its losses from the day before, as economic data fueled optimism about a future easing of the Fed’s monetary policy and investors’ appetite for the risk.
The Dow Jones index gained 0.87%, or 322.35 points, to 37,404.35 points. The broader S&P-500 gained 48.40 points, or 1.03%, to 4,746.75 points. The Nasdaq Composite advanced 185.92 points (1.26%) to 14,963.87 points.
IN ASIA
The Tokyo Stock Exchange ended higher on Friday, in the wake of Wall Street, with US data indicating a soft landing for the world’s largest economy. The Nikkei index gained 0.09% to 33,169.05 points and the broader Topix gained 0.45% to 2,336.49 points.
Banking stocks led sectoral gains, up 2.44% after digesting the impacts of the Bank of Japan’s latest decision.
Chinese indices are hesitant despite the decision of five major local banks to lower interest rates on certain deposits. The Shanghai SSE Composite finished uncertain, the CSI 300 gained 0.19%, the Hong Kong Hang Seng index lost 1.6%.
RATE
American yields are hesitating in a wait-and-see environment.
The ten-year Treasury yield is stalling at 3.8913% after closing Thursday at its lowest since July, while the two-year rate is unchanged at 4.3443%.
The yield on the German ten-year rate climbs 2.2 bps to 1.976%, while that of the two-year rate rises 1.1 to 2.462%.
CHANGES
Currency markets are calm ahead of a burst of data.
The dollar is stagnating against a basket of benchmark currencies, while the euro loses 0.12% to $1.0995, and the pound sterling seeks direction at $1.2695.
In Asia, the yen fell 0.16% to 142.33 yen per dollar, while the Australian dollar lost 0.37% to 0.6776 dollars.
OIL
Oil is up slightly, supported by uncertainty linked to attacks in the Red Sea, but worried about Angola’s decision to leave OPEC+.
Brent advanced 0.86% to $80.07 per barrel, with American light crude (West Texas Intermediate, WTI) gaining 0.91% to $74.56.
(Written by Corentin Chappron, edited by)
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