PARIS (Reuters) – Wall Street is expected to open higher on Thursday after the latest Federal Reserve meeting, while Europe is down mid-session under pressure from disappointing earnings and poor business indicators.

New York index futures suggest Wall Street will open in the green, with the Dow Jones up 0.11%, while the Standard & Poor’s 500 gained 0.37% and the Nasdaq 0.44%.

In Paris, the CAC 40 fell by 0.91% to 7,462.76 points at around 10:45 GMT. The Dax in Frankfurt fell by 0.81%, compared to 0.06% for the FTSE in London.

The pan-European FTSEurofirst 300 index fell by 0.35%, compared to 0.77% for the EuroStoxx 50 and 0.34% for the Stoxx 600.

The results continue to animate trading during a week rich in indicators and monetary policy decisions.

In the United States, investors are digesting the latest comments from the Federal Reserve, which on Wednesday maintained its rates at their current levels while suggesting that a cut could take place as early as September, with employment risks becoming more sensitive.

Markets are now betting on 75 basis points of easing by the end of 2024, or three consecutive 25 basis point cuts.

The publication of the monthly US employment report on Friday will nevertheless encourage investors to be cautious, as it is an essential element for the trajectory of rates.

The technology sector is also benefiting from the good figures published by Meta Platforms, one of the Magnificent Seven, which surprised on the upside and reassured about its ability to compensate for the significant investments made in the development of artificial intelligence.

In the UK, markets are positioning themselves for the upcoming meeting of the Bank of England (BoE), which is expected to maintain the status quo on its rates, while the economy appears to be recovering after the elections as shown by the final manufacturing PMI index for July, published on Wednesday.

In the eurozone, activity is more sluggish and remains in contraction territory, putting pressure on indices already facing a salvo of mediocre results.

Unemployment also unexpectedly rose in the bloc during June, although it remains close to its lowest levels.

VALUES TO FOLLOW ON WALL STREET

Meta Platforms on Wednesday reported revenue that beat Wall Street’s expectations for the April-June period and provided a solid forecast for its third-quarter sales.

Qualcomm on Wednesday provided a revenue forecast for the current quarter that beat Wall Street expectations, but investors are concerned about the impact of trade tensions.

VALUES TO FOLLOW IN EUROPE

The banking sector is in sharp decline, falling by 2.21%. The decline is notably attributable to Société Générale, which fell by 7.42% due to the poor performance of its retail bank in France.

Crédit Agricole SA reported better-than-expected second-quarter results on Thursday, as its corporate and investment banking business posted a record performance, but gained just 0.46%.

Worldline lowered its annual targets on Thursday and shares fell by 17.75%.

Atos widened its operating loss over the first six months of the year on Thursday, declining by 4.7%.

Ayvens reported on Thursday an 11.5% increase in margins from rental contracts and services in the first half, up 7.92%.

Aperam jumped 3.8% as investors said second-quarter figures released Thursday, down from a year earlier, suggested the start of a recovery in activity.

The European automotive sector fell 1.18% after a series of disappointing results. BMW fell 2.61% after reporting a lower-than-expected profit margin in its main automotive segment, while Volkswagen dropped 1.5% after reporting a decline in second-quarter operating profit. Daimler Truck lost 2.71% after reporting a drop in orders.

RATE

US yields are falling after the latest Fed decision, while the publication of the monthly employment report from the Labor Department on Friday is encouraging caution.

The yield on the 10-year Treasury fell 5 bp to 4.0545%, while the two-year fell 5.8 bp to 4.2799%.

The yield on the German ten-year bond weakened by 2.2 bp to 2.28%, while that of the two-year rate lost 2.7 bp to 2.505%.

CHANGES

The pound is falling sharply as investors prepare for the BoE’s next monetary policy meeting on Thursday.

The dollar rose 0.27% against a basket of benchmark currencies, the euro fell 0.36% to $1.0786, and the pound sterling lost 0.58% to $1.2782.

OIL

The barrel is rising under the effect of geopolitical tensions, the situation in the Middle East remaining volatile after the assassination of Ismail Haniyeh, political leader of Hamas, in Tehran on Wednesday.

Brent rose 0.77% to $81.46 per barrel, while American light crude (West Texas Intermediate, WTI) advanced 0.73% to $78.48.

(Written by Corentin Chappron, edited by Kate Entringer)

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