by Pauline Foret

(Reuters) – Wall Street is expected to rise on Friday for a shortened session, like the European stock markets which continue to advance mid-session, driven by the latest data on inflation in the United States and the euro zone .

Futures on New York indices signal an opening on Wall Street up, by 0.28% for the Dow Jones, 0.22% for the Standard & Poor’s-500 and 0.20% for the Nasdaq.

In Paris, the CAC 40 gained 0.30% to 7,200.81 points around 12:56 GMT. In Frankfurt, the Dax advanced 0.42% while in London, the FTSE 100 lost 0.11%, weighed down by losses in the defense sector after recommendation reductions on BAE Systems and Land Qinetiq.

The EuroStoxx 50 index is up 0.30%, the FTSEurofirst 300 by 0.12% and the Stoxx 600 by 0.12%.

As Americans recover from Thanksgiving and prepare to take advantage of “Black Friday” deals, the rally caused by the re-election of Donald Trump at the beginning of the month seems set to continue for this last session of November.

The latest inflation data in the United States has reassured investors about the country’s economic health. In the euro zone, inflation stood at 2.3% in November, in line with expectations, which reinforces bets on a 25 basis point cut in key rates from the European Central Bank during the next meeting.

VALUES IN EUROPE

In Paris, Elior jumped 7.6% after an increase in JPMorgan’s recommendation to “overweight” from “neutral”. Analysts from the American bank judge that the French collective catering group is well positioned to succeed in its restructuring, after several difficult years.

Red lantern of the Stoxx 600, BAE Systems fell 4.2% after Bofa Global Research’s advice was downgraded to “underperformance” from “neutral”.

RATE

European bond yields are under pressure after the latest euro zone inflation data.

The ten-year German Bund rate fell by 2.3 basis points to 2.103%, the two-year by 3.3 basis points to 1.971%.

The yield on ten-year Treasuries fell 2.9 basis points to 4.2129%.

CHANGES

The dollar lost 0.12% against a basket of reference currencies while the Japanese currency regained its composure after data on Japanese inflation which relaunched debates on a possible rate increase by the Bank of Japan.

The yen climbs more than 1% against the greenback to reach a six-week high.

The euro is almost stable at $1.0555 but is heading towards a decline of 3% in November after suffering from the re-election of Donald Trump and fears about the health of the bloc’s economy.

OIL

Oil prices are moving in mixed order but are heading towards a decline of more than 3% over the week after the ceasefire decided between Israel and Hezbollah in Lebanon.

Brent lost 0.25% to $73.10 per barrel while American light crude (West Texas Intermediate, WTI) gained 0.54% to $69.09.

NO ECONOMIC INDICATOR REMAINING ON THE AGENDA FOR NOVEMBER 29

(Written by Pauline Foret with Mara Vilcu, edited by Blandine Hénault)

Copyright © 2024 Thomson Reuters