(Reuters) – Major European stock markets are expected to open in mixed order on Friday, with investors positioning themselves ahead of the release of PCE inflation in the United States later in the day, and digesting the latest meeting of the European Central Bank (ECB). ).
According to the first available indications, the Parisian CAC 40 is up 0.64% at the opening. Futures contracts on the FTSE in London suggest an opening advance of 0.33%, against a decline of 0.31% for the Dax in Frankfurt, and a stable EuroStoxx 50.
PCE inflation in the United States, the indicator of price dynamics on which the Federal Reserve relies to gauge the achievement of its monetary policy objectives, will be published at 1:30 p.m. GMT.
While the Fed will meet on January 31 for its first monetary policy meeting of the year, a surprise on the indicator could clearly trigger a reaction from investors looking for information on the American economic trajectory in 2024.
The GDP published on Thursday was better than expected, while showing a decline in inflationary pressures.
Furthermore, the results season continues and could help to liven up trading, LVMH, one of the main capitalizations in the euro zone, having published its figures on Thursday, after the close.
The markets are also digesting the latest meeting of the ECB, which maintained its deposit rate at 4% on Thursday, as expected.
The institution welcomed the continuation of the disinflation process, while warning that it was still too early to talk about rate cuts.
Several elements perceived as accommodating nevertheless encouraged the markets to continue betting that the central bank would ease its rates by 125 basis points in 2024.
French consumer confidence and private credit in the euro zone are also expected on Friday, at 07:45 GMT and 09:00 GMT, respectively.
A WALL STREET
The New York Stock Exchange ended higher on Thursday after the publication of official data showing greater than expected growth in the American economy in the fourth quarter, which fueled investor confidence, despite the decline of Tesla after a warning on its sales.
The Dow Jones index gained 0.64% to 38,049.13 points. The broader S&P-500 gained 0.53% to 4,894.16 points. The Nasdaq Composite advanced 0.18% to 15,510.50 points.
Tesla, which published its results on Wednesday after the close, plunged 12%, to its lowest since last May, after its boss Elon Musk warned of a slowdown in the electric vehicle manufacturer’s sales growth.
IN ASIA
The Tokyo Stock Exchange fell under pressure from the decline in semiconductors, which fell with their American counterparts. The Nikkei index lost 1.34% to 35,751.07 points and the broader Topix lost 1.35% to 2,497.70 points.
Chip sector heavyweights Advantest and Tokyo Electron fell 5.27% and 2.34%, while investor SoftBank declined 2.2%.
Chinese stocks are mixed, with investors taking profits after three consecutive sessions of rebound. The Shanghai SSE Composite gained 0.13%, the CSI 300 eroded by 0.24%, the Hong Kong Hang Seng index by 0.63%.
RATE
US yields are falling slightly in a wait-and-see environment, and while the GDP indicator released on Thursday showed that disinflation continued in the fourth quarter.
The ten-year Treasury yield fell 3.9 bps to 4.0932%, while the two-year rate fell 3.1 bps to 4.2829%.
CHANGES
Foreign exchange markets are sluggish while the indicators expected on Friday could push investors to reassess their rate expectations for the United States.
The dollar is stable against a basket of reference currencies, while the euro crumbles by 0.09% to 1.0836 dollars, and the pound sterling by 0.07% to 1.2699 dollars. In Asia, the yen fell by 0.06% to 147.74 yen per dollar, while the Australian dollar gained 0.08% to $0.6586.
OIL
Oil is declining slightly after hitting its highest level since December on Thursday, driven by the good health of the American economy and tensions in the Red Sea.
Brent fell 0.44% to 82.07 dollars per barrel, American light crude (West Texas Intermediate, WTI) losing 0.67% to 76.84 dollars.
(Written by Corentin Chappron, edited by)
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