by Mara Vilcu
PARIS (Reuters) – The main European scholarships are expected up on Thursday at the opening, while investors digest the decisions of monetary policy of the American Federal Reserve (FED) and the Bank of Japan (BOF), while analyzing a series of financial results.
According to the first indications available, the Parisian CAC 40 could gain 0.15% at the opening.
The term contracts report a 0.24% increase for the Dax in Frankfurt, by 0.04% for the FTSE in London and 0.29% for the Stoxx 600.
On Wednesday, the Fed as expected, maintained its unchanged guiding rates. However, she gave few indications for the continuation in a decision taken without the agreement of two governors appointed by US President Donald Trump, who has long been pressing the bank to lower its loan costs.
The president of the FED, Jerome Powell, has been cautious with regard to a possible decrease in the Central Bank guiding rates in September. “We did not make any decision concerning the month of September, we do not do it in advance,” he said at the press conference that followed the FOMC meeting, the Monetary Policy Committee of the Central Bank.
“I think the Fed has pushed the probability of a drop in rates,” said Sonu Varghese, a global macroeconomic strategist at Carson Group. “They will expect more data, but more data means more time, and more time means that the rates will remain restrictive for a few more months,” added the strategist.
The Bank of Japan (BOJ) maintained its unchanged interest rates on Thursday and noted its inflation forecasts for the current financial year.
Regarding customs duties, the United States has concluded a trade agreement with South Korea providing that South Korean imports are subject to 15%customs duties, the American president announced on Wednesday.
Investors also analyze a new salvo of financial results for large companies, such as Société Générale, Crédit Agricole or Renault.
A Wall Street
The New York Stock Exchange ended up in dispersed order on Wednesday after the president of the Federal Reserve (Fed), Jerome Powell, hoped for the hopes of a drop in imminent rates, after a meeting in which the American central bank maintained its monetary policy despite dissension.
The Dow Jones index sold 0.38%, or 171.71 points, to 44,461.28 points.
The wider S&P-500 lost 7.96 points, or 0.12%, to 6,362.90 points.
The Nasdaq Composite advanced on its side of 31.38 points (0.15%) to 21,129.67 points.
In Asia
The Nikkei index maintained its initial gains Thursday after the BOJ kept its interest rates unchanged, as expected, while revising its inflation forecasts up. The Tokyo Stock Exchange advances 1.02%.
Chinese and Hong Kong actions fall on Thursday, driven by real estate values and raw materials, while the absence of recovery signals at the Politburo meeting and the gloom of industrial data weighed on the morale of investors.
In China, the composite index of the Shanghai Stock Exchange fell by 0.57% and the CSI 300 of large capitalizations abandons 0.98%.
The Hong Kong Stock Exchange lost 1.07%.
Rate/change
The yen appreciates after the BOJ revised upwards its inflation forecasts and was cautiously optimistic about economic prospects, while deciding to maintain its unchanged rates.
The yen is exchanged at 148.82 for a dollar (+0.45%).
For its part, the dollar loses 0.13% against a basket of reference currencies.
The euro earns 0.28% to 1.1436 dollars.
On the bond market, the yield of Treasuries at ten years lost 2.2 base points at 4.3561% after the Fed announcements. The two -year -old abandons 0.9 base point at 3.9283%.
OIL
Oil prices are decreasing, penalized by a surprise increase in American crude stocks. Investors also assess the risk of a shortage of supply in a context where US President Donald Trump puts pressure for a rapid resolution of war in Ukraine through new customs taxes.
Brent loses 0.26% at $ 73.05 per barrel and light American crude (West Texas Intermediate, WTI) abandons 0.21% to $ 69.85.
(written by Mara Vîlcu, edited by Blandine Hénault)
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