by Mara Vilcu

PARIS (Reuters) – The main European stock markets are expected to be in disarray at the opening on Friday, as investors wait to know who will be the next French Prime Minister, who must be named before the end of the day.

According to the first available indications, the Parisian CAC 40 could gain 0.22% at opening.

Futures contracts signal a rise of 0.02% for the Dax in Frankfurt, a fall of 0.17% for the FTSE in London and a rise of 0.02% for the Stoxx 600.

In France, President Emmanuel Macron has promised to appoint a new prime minister by Friday evening. The Elysée invited party leaders and group presidents to the National Assembly, with the exception of those of the National Rally (RN) and La France insoumise (LFI) at 2:30 p.m. (12:30 GMT).

Investors are also monitoring the situation in the Middle East. The Israeli government ratified the ceasefire agreement with Hamas on Friday, paving the way for the cessation of fighting in Gaza within the next 24 hours.

At the end of these 24 hours, a period of 72 hours must open with a view to the release of the hostages held by the Palestinian armed group in the coastal enclave.

In addition to news from the geopolitical front, the session is poor in economic data and financial results.

Minutes from the European Central Bank’s (ECB) September 10-11 monetary policy meeting showed Thursday that bank officials are in no rush to cut key rates again, even though they are keenly aware of the exceptionally high level of uncertainty and risks.

VALUES TO FOLLOW:

A WALL STREET

Wall Street ended lower on Thursday as investors took advantage of the absence of economic data or catalysts that could influence sentiment to consolidate their positions before the start of the third quarter earnings season.

The Dow Jones index lost 0.52%, or 243.36 points, to 46,358.42 points. The broader Standard & Poor’s 500 lost 18.61 points, or 0.28% to 6,735.11 points. The Nasdaq Composite fell 18.75 points, or 0.08%, to 23,024.626 points.

IN ASIA

The Tokyo Stock Exchange ended down 1.01% as investors took profits ahead of a long three-day weekend, while Fast Retailing, owner of the Uniqlo brand, jumped (+6.8%) after announcing a record annual profit.

Chinese stocks fell on Friday after reaching their highest level in ten years.

The composite index of the Shanghai Stock Exchange fell by 1% and the CSI 300 of large capitalizations lost 1.93%.

The Hong Kong Stock Exchange is down 1.44%.

CHANGES

The yen edged higher on Friday, but was poised for its biggest weekly decline in a year on rapidly diminishing chances of a short-term rate hike, while the euro held near a two-month low as investors awaited an announcement from France’s new prime minister.

The Japanese yen rose 0.16% to reach 152.82 yen per US dollar.

The dollar lost 0.18% against a basket of reference currencies.

The euro gained 0.04% to 1.1568 dollars.

RATE

The yield on the French ten-year OAT is down 2.1 basis points at 3.5071% ahead of the expected announcement of a new Prime Minister.

The ten-year German Bund yield fell 1.1 basis points to 2.6930%.

That of Treasuries of the same maturity fell by 1.9 basis points to 4.1286%.

OIL

Oil prices are falling on Friday as the market risk premium faded after Israel and Hamas agreed on the first phase of a plan to end the war in Gaza.

Brent dropped 0.44% to $64.93 per barrel and American light crude (West Texas Intermediate, WTI) lost 0.41% to $61.26.

METALS

Gold is falling, extending its decline after ending a series of four consecutive days of increases on Thursday which allowed it to cross the $4,000 mark for the first time. Spot gold was down 0.12% at $3,970.15 an ounce by 0619 GMT.

MAIN ECONOMIC INDICATORS ON THE AGENDA FOR OCTOBER 10:

COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS

USA 2:00 p.m. October confidence index 54.2 55.1

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(Written by Mara Vîlcu, edited by Blandine Hénault)

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