by Diana Mandia

PARIS (Reuters) – Major European stock markets are expected to open higher on Thursday as a rate cut by the European Central Bank is all but certain and investors await comments from the institution’s policymakers on the path forward in the coming months.

According to the first available indications, the Parisian CAC 40 could gain 1.02% at the opening.

Futures are signaling a rise of 1.06% for the Dax in Frankfurt, 1.13% for the FTSE in London and 1.34% for the EuroStoxx 50.

Stock markets are expected to be on a positive note as the ECB is expected to announce a 25 basis point interest rate cut at 1215 GMT on Thursday, the second since June, amid lingering inflation risks and a slowing euro zone economy, as investors await signals of further cuts to come.

Investors will be watching closely for any comments from ECB President Christine Lagarde on a further rate cut as early as October, although some conservative officials have advocated slower monetary easing as inflation in the 20-nation eurozone remains above the 2% target.

Expectations for central banks are also setting the tone in the United States, where core inflation last month came in higher than expected on Wednesday, potentially dissuading the Federal Reserve from cutting interest rates by 50 basis points next week and prompting it to settle for a 25 basis point cut.

A mixed US jobs report released last Friday had already largely dispelled traders’ hopes of an aggressive September decline, with the market showing signs of slowing but remaining resilient.

The release of weekly U.S. jobless claims and producer price data later in the day will likely help fuel investors’ bets on price developments and the health of the U.S. economy.

VALUES TO FOLLOW:

A WALL STREET

The New York Stock Exchange recovered during the session and ended in the green on Wednesday thanks to technology stocks, after initially not welcoming the latest inflation figures in the United States, which diminish hopes of a sharp drop in interest rates by the Fed.

The AI ​​chip giant Nvidia, which according to the specialist publication Semafor could be authorised by the US authorities to export its products to Saudi Arabia, ended the session with a gain of 8.03%.

IN ASIA

The Tokyo Stock Exchange rose on Thursday, following the rally in technology stocks on Wall Street the day before and also helped by a weaker yen against the dollar after the publication of US inflation figures.

The Nikkei index rose 3.34% to 36,805.81 points.

In China, markets saw some volatility on Thursday due to the decline in consumer stocks, although the technology sector supported investor sentiment.

The CSI 300 index of large continental capitalizations gained 0.07% and the Shanghai Stock Exchange composite index rose 0.26%.

RATES / EXCHANGES

Treasury yields edged higher Thursday as investors digested U.S. inflation data. The 10-year bond rose 1.3 basis points to 3.6665% and the two-year bond rose 1.4 basis points to 3.6600%.

Foreign exchange markets were mostly flat, with the dollar up 0.06% against a basket of benchmark currencies as inflation data appeared to support a cautious interest rate cut by the Fed next week.

The euro rose 0.05% to 1.1017 dollars.

OIL

Oil prices rose Thursday, supported by concerns that Hurricane Francine will impact output in the United States, the world’s largest crude producer.

Brent gained 0.85% to $71.21 per barrel and light American crude (West Texas Intermediate, WTI) gained 0.74% to $67.81.

MAIN ECONOMIC INDICATORS ON THE AGENDA FOR SEPTEMBER 12:

COUNTRY GMT INDICATOR PERIOD CONSENSUS PREVIOUS

USA 12:30 Weekly registrations at 7 230,000 227,000

unemployment sept.

USA 12:30 Producer prices August +0.1% +0.1%

– over one year +1.8% +2.2%

(Written by Diana Mandiá)

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