by Blandine Henault

PARIS (Reuters) – Wall Street is expected to fall on Friday and the European stock markets are anchored in the red at mid-session, while profit-taking dominates at the start of the year against a backdrop of lowering expectations for an upcoming easing monetary policy of the major central banks.

Investors are awaiting the publication at 1:30 p.m. GMT of the official report on job creation in the United States, which will provide an overview of the state of affairs in the labor market and possible indications on the future trajectory of rates in the United States. United.

New York index futures signal Wall Street opening down 0.29% for the Dow Jones, 0.33% for the S&P 500 and 0.4% for the Nasdaq. In Paris, the CAC 40 fell 1.16% to 7,364.09 around 11:40 GMT. In Frankfurt, the Dax fell by 0.86% and in London, the FTSE lost 0.93%.

The pan-European FTSEurofirst 300 index lost 0.91%, the EuroStoxx 50 in the euro zone lost 1.04% and the Stoxx 600 lost 1%.

In the United States, strong economic indicators, notably the ADP employment report, have removed the prospect of a first rate cut from the Federal Reserve (Fed) in March, which has pushed up bond yields and the dollar.

In this context, the official report on job creation in the United States will be closely monitored. Economists are counting on a decline in creation to 170,000 jobs.

In Europe, PMI activity data confirmed that the euro zone was close to or already in recession but inflation figures showed an acceleration, which again postpones the start of monetary easing by the European Central Bank ( ECB).

RATES The ten-year German Bund yield accelerated its progression after the publication of inflation figures.

It advances by almost seven basis points, to 2.172%, which brings its progression since the start of the week to 15 points.

Same rise for the ten-year Treasuries rate, which gained more than five basis points, to 4.0419%. It was around 3.8% at the end of December.

CHANGES

The dollar remains buoyed by the ebbing of expectations of an upcoming Fed rate cut and is on track to post its best weekly performance since mid-July against a basket of reference currencies.

The strengthening of the greenback is to the detriment of the euro, which nevertheless reduced its losses somewhat after the data on inflation in the euro zone. The single currency fell 0.28% to $1.0912.

VALUES TO FOLLOW AT WALL STREET

VALUES IN EUROPE

European spirits groups are falling as the Chinese Ministry of Commerce announced the launch of an anti-competitive investigation into wine spirits, such as cognac, imported from the European Union.

Remy Cointreau fell by 11.79%, Pernod Ricard by 4.78% and Diageo lost 2.27%.

Sodexo fell 0.68% after the publication of a turnover in line with expectations for the first quarter and the expected confirmation of annual objectives. Investors are focusing on the investor day scheduled for Wednesday for the Pluxee division which is due to go public on February 1.

OIL

Crude prices are increasing, still supported by tensions in the Middle East.

A barrel of Brent gained 0.36% to $77.87 and that of American light crude (WTI) advanced 0.58% to $72.61.

MAIN ECONOMIC INDICATORS ON THE AGENDA FOR JANUARY 5

COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS

USA 1:30 p.m. Job creation December 170,000 199,000

Unemployment rate 3.8% 3.7%

Average hourly wage +0.3% +0.4%

– over one year +3.9% +4.0%

(Written by Blandine Hénault, edited by Kate Entringer)

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