(Corrects production price in the title)

by Diana Mandia

(Reuters) – The main European stock markets are expected to be directionless at the opening on Thursday, with caution needed before the publication of additional data on inflation in the United States.

According to the first available indications, the Parisian CAC 40 could gain 0.05% at the opening after finishing the day before at a closing record.

Futures contracts report a drop of 0.06% for the Dax in Frankfurt, quasi-stability (+0.01%) for the FTSE in London and a decline of 0.08% for the Stoxx 600.

Markets are adopting a wait-and-see attitude after yesterday’s record levels, and with no major indicator on the agenda in Europe, all eyes remain on the United States, where the price report to production for the month of February is due to be released at 12:30 GMT.

Highly awaited after the rebound in consumer prices experienced on Tuesday, it should provide new data making it possible to anticipate the next monetary policy decisions of the American Federal Reserve (Fed).

Producer prices are all the more closely monitored as they feed into the personal consumption expenditure (PCE) index, the measure of inflation favored by the American central bank, which is due to meet next week.

Investors are also awaiting the publication of retail sales in the United States at 12:30 GMT, which should rebound in February after a surprise drop in January, as well as data on weekly jobless claims.

A WALL STREET

The New York Stock Exchange ended in mixed order on Wednesday, with only the Dow Jones registering in the green, while investors favored profit-taking in the semiconductor sector, against a backdrop of caution on the eve of the publication of additional data on inflation in the United States.

The Dow Jones index gained 0.1%, the broader S&P-500 lost 0.19% and the Nasdaq Composite fell 0.54%.

The semiconductor index, up 17% since the start of the year, fell 2.5% on Wednesday.

IN ASIA

The Tokyo Stock Exchange ended up 0.29% on Thursday, driven by gains in the energy sector.

In China, the composite index of the Shanghai Stock Exchange fell by 0.64% and the CSI 300 of large capitalizations lost 0.62%.

The Hong Kong Stock Exchange fell by 1.18%, weighed down by the decline of Wuxi AppTec (-12.9%) while the Biotechnology Innovation Organization (BIO), a trade association based in Washington and representing biotechnology companies, will take measures to “separate” from the company, member of the association.

RATES/EXCHANGES

The yield on ten-year Treasuries, which increased on Wednesday, was almost unchanged on Thursday and was at 4.1997%. That of the two-year rate increased by 2 bp to 4.6429%.

The dollar gained 0.09% against a basket of reference currencies, while the euro lost 0.05% to 1.0941 dollars.

OIL

Oil prices were stable on Thursday, despite strong demand in the United States, where gasoline stocks hit their lowest level in three months and crude stockpiles fell unexpectedly, and concerns over supply after the Ukrainian attacks on Russian refineries.

The barrel of Brent rose 0.02% to $84.06 and that of American light crude (WTI) lost 0.04% to $79.69.

(Written by Diana Mandiá, edited by Blandine Hénault)

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