by Diana Mandia

(Reuters) – Wall Street is expected to rise and European stock markets advance at mid-session on Thursday, supported by the technology and real estate sectors, even if their progress is cautious before the Bank’s monetary policy announcements of England (BoE).

Futures on New York indices signal an opening up 0.09% for the Dow Jones, 0.39% for the Standard & Poor’s-500 and 0.62% for the Nasdaq.

In Paris, the CAC 40 gained 0.84% ​​to 7,634.11 points around 10:10 GMT. In Frankfurt, the Dax rose by 0.66% and in London, the FTSE 100 rose by 0.16%.

The EuroStoxx 50 index is up 0.82%, the FTSEurofirst 300 is up 0.50% and the Stoxx 600 is up 0.52%.

The BoE rate announcement, scheduled for Thursday at 11:00 GMT, sets the tone for markets on Thursday.

If a status quo is widely expected, investors will be particularly attentive to the comments of Andrew Bailey, the governor of the institution, to determine whether a reduction in borrowing costs is envisaged before September while British inflation has fallen to 2% in May over one year.

However, strong underlying price pressures all but rule out any interest rate cuts ahead of the July 4 general election and markets see only a 30% chance of a rate cut in August, estimating that a first decision is more likely in September or November.

However, Rabobank analyst Bas van Geffen believes the market is positioning itself for rate cuts, and not just in the UK.

In Switzerland, the National Bank (SNB), as expected, lowered its key rates on Thursday, after a first reduction in March. The decision caused the Swiss franc to fall and shares on the Zurich Stock Exchange to rise by 0.33%.

On the other hand, the Norwegian central bank kept its main key rate unchanged on Thursday, as expected, while warning that a possible reduction in the cost of credit would not take place before 2025, a later deadline than expected.

In the United States, several Fed officials are due to speak during the day, and investors will learn the weekly unemployment claims figures at 2:30 p.m.

VALUES TO FOLLOW AT WALL STREET [L8N3IH0LG]

The New York Stock Exchange should reopen higher on Thursday after a public holiday on Wednesday, with the Nasdaq particularly supported by the enthusiasm around Nvidia NVDA.O, which on Tuesday became the most valued company on the stock market in the world following a dizzying rise of action.

VALUES IN EUROPE

While waiting for the BoE, European stocks are advancing, supported by the technology sector and real estate.

The technology index (+1.35%) is driven by semiconductor equipment maker ASMI, which climbs 5.7% after Morgan Stanley raised its recommendation from “overweight” to “line weight” .

In Paris, Danone SA lost 4.48% after saying it expected annual growth in its turnover on a comparable basis of 3% to 5% between 2025 and 2028.

The manufacturer of stationery and lighters BIC, which has revised downwards its forecasts for annual turnover growth, loses around 9% and is the bottom of the SBF 120 index.

Elsewhere in Europe, Tate & Lyle lost 6.35%, the British food ingredients manufacturer having announced an agreement to buy the American group CP Kelco from JM Huber Corporation for an amount of 1.8 billion dollars (1.68 billion euros).

RATE

Bond yields in the euro zone are rising, while all eyes are on the BoE and on the spread between the 10-year OAT and the German Bund, France having carried out a debt auction on Thursday, the first since the dissolution of the National Assembly decided by Emmanuel Macron.

The ten-year German Bund yield increased by 3.6 basis points to 2.44% while that of the OAT increased by 1.8 basis points to 3.1744%.

The 10-year yield gap between France and Germany appears rather stable at 72 basis points (bp), compared to less than 50 basis points before the elections were called in France.

According to Commerzbank analysts, Agence France Trésor (AFT) announced a relatively modest volume of 8.0 to 10.5 billion euros, which contrasts with a medium-term auction volume closer to 12 billion euros. euros over the last few months.

UBS said in a note released Thursday that investors will take a wait-and-see approach until electoral alliances and tax policies for cohabitation are clearer.

CHANGES

The dollar advanced 0.15% against a basket of reference currencies, while the euro lost 0.16% to 1.0726 dollars.

The pound sterling lost 0.10% against the dollar and advanced 0.17% against the euro.

OIL

Oil prices are up slightly on Thursday as the market awaits US inventory data later in the day.

Brent gained 0.2% to $85.25 per barrel, while American light crude (West Texas Intermediate, WTI) gained 0.2% to $81.60.

(Written by Diana Mandia, edited by Augustin Turpin)

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