PARIS (Reuters) – Wall Street is expected to be in the green on Friday and the European stock markets are moving in disorganized order mid-session, investors digesting company results before the American elections and new economic data. New York index futures suggest Wall Street opening in the green, with the Dow Jones up 0.24%, while the Standard & Poor’s 500 is up 0.26% and the Nasdaq is up 0. .28%.
In Paris, the CAC 40 fell by 0.05% to 7499.5 points around 10:40 GMT. The Dax in Frankfurt strengthened by 0.14%, while the FTSE in London declined by 0.02%.
The pan-European FTSEurofirst 300 index lost 0.02%, the EuroStoxx 50 gained 0.1% and the Stoxx 600 increased by 0.02%.
US investors are focusing on uncertainties over the outcome of the November 5 US election ahead of the release of key indicators during the session and in the coming weeks.
As the chances of a victory for Donald Trump increase, the markets are trying to analyze the consequences of the economic policies that the two candidates want to pursue.
“If the analysis of the ideological positions of the two parties remains valuable, the personality of the candidates introduces a significant level of uncertainty”, adds Patrick Nielsen, deputy general director of MAPFRE AM according to whom “the key question is that of the margin of action after the election. If one party controls both the House and the Senate, the chances of more assertive politics increase.
The session will also be marked by the publication of the durable goods indicator in the United States at 12:30 p.m. GMT, shedding light on the strength of consumption in September while the resistance of the American economy raises questions about the reduction in interest rates. the Federal Reserve (FED) in the medium term.
Before the Fed’s decision on November 7, investors will also analyze the publication of the monthly employment report on November 1.
In Europe, the markets are digesting corporate results that are less good than expected overall and the Eurozone PMIs published on Thursday reflect a gloomy economy and fuel debate on the future extent of the rate cut. of the European Central Bank. VALUES TO FOLLOW AT WALL STREET
Capri Holdings loses 46% in pre-opening after the Federal Trade Commission (FTC) blocked the American luxury group’s $8.5 billion merger with Tapestry over competition concerns.
The American banking group Morgan Stanley announced that its managing director Ted Pick would become chairman of the group on January 1, 2025, replacing James Gorman, who left to head the board of directors of Walt Disney.
After a sharp increase session on Thursday (+21.9%) thanks to quarterly results which surprised by their solidity, Tesla fell by 2.2% in pre-opening.
VALUES IN EUROPE Automotive stocks are struggling on Friday with a drop of 0.9% while the German Mercedez-Benz disappointed with its third quarter profit, dropping 1.25%, and the French equipment manufacturer Valeo fell by 10.41% having lowered its turnover target for this year.
Alten for its part lost 7.91%, the engineering group, very exposed to the European automobile sector, having lowered its annual objectives on Thursday in the face of the slowdown in activity.
The spirits group Rémy Cointreau lost 0.59% after lowering its objectives for the 2024-2025 financial year on Friday following a 16.1% organic drop in its turnover in the second quarter .
The NatWest banking group gained 3.2% after reporting a 25% increase in its third quarter profit.
RATES Bond yields were stable on Friday in the absence of a catalyst in the United States and increased slightly in Germany after local data published on Thursday.
The yield on the ten-year Treasury declined by 0.2 bps to 4.2%, while the yield on the two-year note stagnated at 4.066%.
The yield on the German ten-year rose by 2.5 bp to 2.28%, that of the two-year rate rose by 3.9 bp to 2.136%.
FOREIGN EXCHANGES The foreign exchange market is stable on Friday awaiting the durable goods indicator in the United States.
The dollar fell by 0.01% against a basket of reference currencies, the euro eroded by 0.02% to 1.0825 dollars, and the pound sterling strengthened by 0.1% to 1.2985 dollars. .
OIL
Uncertainty over the course of the conflict in the Middle East continues to modestly support crude prices upwards.
Brent rose by 0.66% to $74.87 per barrel, American light crude (West Texas Intermediate, WTI) rose by 0.71% to $70.69.
MAIN ECONOMIC INDICATORS ON THE AGENDA OF (date):
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
US 12:30 Durable goods September -1.0% 0%
US 2:00 p.m. Oct University Sentiment 69.0 68.9
Michigan (definitive)
(Written by Bertrand De Meyer, edited by Kate Entringer)
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