by Claude Chendjou
PARIS (Reuters) – The main European stock markets are expected on a cautious note on Friday for the last session of a week dominated by numerous company publications while the indices are close to their record levels.
According to the first available indications, the Parisian CAC 40, rich in luxury stocks, should lose 0.19% at the opening, while Hermès publishes its quarterly accounts. The Dax in Frankfurt could gain 0.02% and get closer to its absolute high of 17,049.52 points. The FTSE 100 in London is expected to advance 0.14%. The EuroStoxx 50 index is expected to fall by 0.06%.
After Thursday marked by huge publications of company results, the luxury sector, which gained 2%, should still attract attention in Europe with Hermès and L’Oréal in particular.
Investors also continue to monitor indicators on the evolution of the trajectory of interest rates while several central bankers recently stressed that a drop in the cost of credit was not imminent. François Villeroy de Galhau, however, estimated, in an interview with Ouest-France, that inflation would return to 2% in France and the euro zone by 2025, at the latest.
In this regard, investors will follow the final figures for consumer prices in Germany for the month of January, with the Reuters consensus forecasting a slowdown to 3.1% year-on-year after an increase of 3.8% in December.
On the economic side, the Banque de France (BdF) forecasts growth in gross domestic product (GDP) between 0.1% and 0.2% in the first quarter, after two quarters of stability, while a recession remains feared.
A WALL STREET
The New York Stock Exchange ended higher on Thursday, the S&P-500 having briefly reached the threshold of 5,000 points at the end of the session – a first – while investors took into account quarterly results, employment data and comments from Federal Reserve (Fed) officials.
The Dow Jones index gained 0.13%, or 48.97 points, to 38,726.33 points.
The broader S&P-500 gained 2.85 points, or 0.06%, to 4,997.91 points.
The Nasdaq Composite advanced 37.07 points (0.24%) to 15,793.72 points.
More than half of the S&P-500 companies have published their quarterly results. Of these, 80.6% exceeded expectations, according to LSEG data.
ARM Holdings jumped 47.9% after saying it expected solid demand for its artificial intelligence (AI) chips.
Walt Disney rose 11.5% after reporting quarterly results above expectations and making several announcements: $3 billion share buyback program, 50% increase in dividend and acquisition of a stake in the publisher of Epic Games games.
IN ASIA
On the Tokyo Stock Exchange, the Nikkei index advanced 0.09% to 36,897.42 points, after reaching a new 34-year high during the session, thanks in particular to a depreciation of the yen, which fell to a two-month low of 149.37 per dollar.
The index was also driven by SoftBank (+8.72%), the parent company of ARM, whose shares soared on Wall Street. On the downside, Nissan tumbled 11.56% after lowering its forecasts, in a context of falling sales in China.
The broader Japanese Topix lost 0.19% to 2,557.88 points at the close.
The MSCI index of Asia and the Pacific stocks (excluding Japan) was virtually stable on Friday and headed for an increase of 0.7% for the week as a whole, its longest series of weekly gains since June.
Trading was, however, lighter in Asia due to the closure of Chinese markets for the Lunar New Year holidays, while the session was cut short in Hong Kong.
VALUES TO FOLLOW IN EUROPE:
EXCHANGES/RATES
The dollar is stable (+0.03%) against a basket of reference currencies
The euro is practically unchanged (-0.05%), at 1.0771 dollars, while the pound sterling stands at 1.2615 dollars (-0.01%).
The New Zealand dollar rose 0.39% to 0.612 US dollars, the New Zealand central bank having surprised the market by announcing plans to increase its rates in February and April following a series of indicators economies more dynamic than expected.
Among cryptocurrencies, bitcoin, up 1.95% to $46,182, is expected to record its best weekly performance in two months, with a gain of more than 6% at this stage.
On the bond market, the yield on ten-year US Treasury bonds fell by around two basis points, to 4.1501%, after an increase of more than five points the day before, with Fed officials insisting on the that more evidence is needed that inflation will return to the 2% target.
OIL
The oil market is down slightly on Friday but is expected to record a weekly gain of more than 5% following Israel’s rejection of Hamas’ ceasefire offer.
Brent fell by 0.15% to $81.51 per barrel and American light crude (West Texas Intermediate, WTI) fell by 0.05% to $76.18.
MAIN ECONOMIC INDICATOR ON THE AGENDA OF FEBRUARY 9:
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
FROM 07:00 HICP consumer prices January -0.2% -0.2%*
(final)
– over one year +3.1% +3.1%*
*first estimate
(Writing by Claude Chendjou, edited by Kate Entringer)
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I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
