by Pauline Foret

(Reuters) – Wall Street is expected to fall on Friday while European stock markets advance at mid-session, caution reigning in the markets as investors digest American inflation and await the publication of new economic data in the United States as well than Fitch’s decision on France’s rating. Futures on New York indices signal a downward opening on Wall Street, with the Dow Jones losing 0.11%, compared to a decline of 0.13% for Standard & Poor’s and 0.26% for the Nasdaq.

In Paris, the CAC 40 gained 0.13% to 7,551.54 points around 11:00 GMT. In Frankfurt, the Dax advanced 0.20% while in London, the FTSE lost 0.17%.

The pan-European FTSEurofirst 300 index is stable, showing a slight increase of 0.01%, like the Eurozone EuroStoxx 50 and the Stoxx 600, which gain 0.01% and 0.06% respectively.

Across the Atlantic, the publication of data showing higher than expected inflation as well as figures showing that the number of jobless claims in the United States has increased have fueled questions about the American economy and monetary policy.

Investors are now awaiting the release later today of producer prices for September, as well as the preliminary Michigan Sentiment Index.

This data will help markets clarify their expectations regarding the future of the Federal Reserve’s monetary policy, as the latest inflation figures appear to have completely erased the possibility of an interest rate cut of more than 25 basis points at the central bank’s November meeting.

In Europe, the markets are digesting the publication of a draft finance law for 2025, which provides for a budgetary effort of 60.6 billion euros via a reduction in public spending and increases in tax revenue. They are also monitoring Fitch’s decision on France’s credit rating, which will be released later today.

Caution will remain in order this Friday, on the eve of the budgetary policy announcements planned for Saturday in China, the absence of details on additional measures intended to support the world’s second largest economy having shaken the markets at the start of the week.

“The stimulus is important for Chinese stocks, but also for global sentiment more generally,” said Tessa Mann, investment strategist at insurance group WTW. VALUES TO FOLLOW AT WALL STREET

Tesla unveiled its highly anticipated robo-taxi on Thursday, saying production was expected to begin in 2026 and the vehicles would cost less than $30,000.

JP MORGAN reported a fall in third-quarter profit on Friday as a larger provision for payment defaults wiped out the investment bank’s gains.

BlackRock reported Friday, for the third consecutive quarter, a record level of assets under management, driven by interest in the group’s exchange-traded funds.

Wells Fargo also released its results this Friday. The bank saw its profit fall in the third quarter as the bank’s interest income was dragged down by weak loan demand and increased payments to depositors.

RATES Treasury yields continue to be mixed this Friday, with the long-term yield being lifted by data released Thursday on jobless claims and the annual rise in inflation.

The yield on ten-year Treasuries increased by 0.2 basis points to 4.0963%, while the two-year fell by -1.8 basis points to 3.9806%.

After the German inflation data, the ten-year German Bund yield gained 4.0 basis points to 2.2930%, and the two-year 4.3 basis points to 2.2760%.

CHANGES

The dollar stabilized on Friday after climbing sharply the day before, as investors digested the latest inflation and jobs data, while rising British economic growth failed to lift the pound. The dollar lost 0.04% against a basket of reference currencies.

The euro lost 0.03% to 1.0932 dollars.

The pound sterling gains 0.03% against the dollar, 0.08% against the euro

OIL

Oil prices weakened Friday after a period of continuous gains over the past two weeks, as investors weighed the impact of hurricane damage on U.S. demand and possible supply disruption if Israel attacked Iranian oil infrastructure.

Brent lost 0.92% to $78.67 per barrel, and American light crude (West Texas Intermediate, WTI) fell 0.92% to $75.15.

MAIN ECONOMIC INDICATORS ON THE AGENDA FOR OCTOBER 10:

USA 12:30 Producer prices (PPI) September +0.1% +0.2%

– over one year +1.6% +1.7%

USA 2:00 p.m. October Sentiment Index 70.8 70.1

Michigan (preliminary)

THE SITUATION ON THE MARKETS

(Some data may have a slight lag)

(Written by Pauline Foret, edited by Kate Entringer)

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