PARIS (Reuters) – The main European stock markets, supported in particular by energy, rebounded on Friday morning after three sessions in a row in the red but the session could once again be volatile with the publication of the results of the major American banks.

In Paris, the CAC 40 rose 1.11% to 7,469.31 points around 09:00 GMT. In London, the FTSE 100 advances by 0.75% and in Frankfurt, the Dax gains 0.85%.

The EuroStoxx 50 index increased by 1.01%, the FTSEurofirst 300 by 0.85% and the Stoxx 600 by 0.92%.

Futures contracts on Wall Street predict near stability for the Dow Jones and the Standard & Poor’s 500, while the Nasdaq could fall by 0.13% the day after a session that was already in disarray.

Expectations of rate cuts from major central banks, which caused a stock market rally at the end of 2023, are partially called into question by the latest inflation data.

The rise in consumer prices (CPI) accelerated in France in December, to 4.1% over one year, in data harmonized according to European standards (HICP). Figures for the entire euro zone will be published next Wednesday but the preliminary estimate showed that inflation in the bloc started to rise again last month year-on-year (+2.9%).

The President of the European Central Bank (ECB), Christine Lagarde, however declared Thursday evening that if the battle against inflation was won then rates would fall, estimating that they had probably reached their peak.

In the United States, the market is awaiting the producer price statistics (PPI), scheduled for 1:30 p.m. GMT, the day after the publication of the CPI which also showed an acceleration in December (+3.4% over one year).

Quarterly and annual publications from major American banks such as Citigroup, JPMorgan, Wells Fargo and Bank of America are also expected while their profits are expected to decline over the last three months of 2023 against a backdrop of rising provisions.

On the stock market, the positive trend is fueled by the energy sector (+1.19%) which benefits from the fear of a new escalation in the Middle East after strikes carried out by the United States and Great Britain against the Houthis in Yemen in retaliation for their attacks in the Red Sea.

In terms of values, Airbus gained 2.22% after reporting on Thursday a record number of aircraft orders in 2023, which allows it to maintain first place in the sector for the fifth consecutive year.

Casino is volatile after the green light from shareholders and creditors to the heavily indebted group’s safeguard plan.

Burberry plunges 7.24%, the luxury group having warned that its annual results would be lower than its previous forecasts.

(Writing by Claude Chendjou, edited by Kate Entringer)

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