by Laetitia Volga
PARIS (Reuters) – The main European stock markets evolve without much change on Friday despite the progress made in Washington on the infrastructure investment plan, caution is in order while a flagship measure of inflation in the United States is expected. United.
In Paris, the CAC 40 index lost 0.14% to 6,621.83 points around 08:20 GMT. In Frankfurt, the Dax gives up 0.14% and in London, the FTSE takes 0.11%.
The EuroStoxx 50 index for the euro zone fell by 0.12%, the FTSEurofirst 300 by 0.06% and the Stoxx 600 by 0.02%.
US President Joe Biden announced a bipartisan Senate deal on an eight-year, $ 1.2 trillion plan to renovate infrastructure and help stimulate the US economy.
If the news allowed Wall Street to set records Thursday night, it only led to a brief and modest increase in the stock markets in Europe at the opening.
Inflation fears remain present and the market will be sure to follow closely at 12:30 GMT the monthly statistics of household income and expenditure in the United States, which include the “core PCE” price index, the barometer of inflation favored by the Fed.
The Reuters consensus expects an increase of 3.4% over one year after 3.1% in April.
“The consensus already expects a fairly significant increase (…) The bar could be set very high for an unpleasant surprise, one which could push the Federal Reserve to reduce its purchases of securities in the markets,” said the ING strategists in a note to clients.
VALUES
The construction sector (+ 0.46%) shows one of the strongest growth in Europe in reaction to the progress of the plan wanted by Joe Biden for infrastructure in the United States.
In Paris, ArcelorMittal, up 2.64%, takes the lead of the CAC 40.
Sports equipment manufacturers Adidas and Puma take 5.2% and 1.61% respectively and distributor JD Sports 4.60% after the publication Thursday evening of better-than-expected quarterly results from Nike, which expects annual sales at above expectations, focusing on online commerce and higher demand. The action of the American group gained about 13% in after-market trading on Wall Street.
Credit Suisse takes 2.05%. Several sources told Reuters that the Swiss bank, weakened by the Archegos and Greensill Capital cases, is under pressure to draw up a restructuring plan that could involve a potential merger with UBS (+ 0.03%).
A WALL STREET
The New York Stock Exchange ended higher Thursday, with records for the Nasdaq and the S & P-500, after the Senate agreement between Democrats and Republicans on a broad plan of investments in infrastructure. [.NFR]
The Dow Jones index gained 0.95% to 34,196.82 points, the S & P-500 gained 0.58% to 4,266.49 points and the Nasdaq Composite 0.69% to 14,369.70 points.
Major US banks have advanced in out-of-session trading amid the strong stress test results of the Federal Reserve, which announced that they would no longer be subject to restrictions on the amounts of share buybacks and dividends.
Futures suggest an open up 0.25% for the Dow Jones and mostly flat for the S & P-500 and Nasdaq.
IN ASIA
On the Tokyo Stock Exchange, the Nikkei advanced 0.66%, driven by cyclical and technology stocks in the wake of Wall Street.
The rest of the Asian markets are also supported by the New York Stock Exchange records on Thursday: the CSI 300 of mainland Chinese large caps climbed 1.63% and the Kospi in South Korea (+ 0.51%) has reached a historic peak during the session.
RATE
The US bond market is experiencing little change in anticipation of today’s US indicators. The yield on ten-year government bonds is 1.4867%.
The German ten-year, the benchmark in the euro zone, is stable at -0.179%.
CHANGES
The dollar is virtually unchanged against a basket of major international currencies (-0.05%) and the euro is posted at 1.1945 dollars, up 0.13%.
With the continued improvement in the health situation and the easing of restrictions, German consumer morale improved more than expected as July approached, its index calculated by the GfK institute rising to -0.3, highest since August, after -6.9 the previous month and -4.0 for consensus.
The pound sterling drops slightly against the greenback after having already given up 0.3% the day before after the Bank of England maintained its key rate at 0.1% and its government bond purchase program .
OIL
Oil prices rise for the third day in a row and are heading for a fifth straight week of increases as demand for crude is strong in the United States, Europe and China as the economy recovers.
Attention is starting to shift to the next Opec + producer meeting on July 1, where a potential further easing of supply restrictions could be debated from August.
A barrel of Brent gained 0.28% to 75.77 dollars and US light crude 0.19% to 73.44 dollars.
(Report Laetitia Volga, edited by Jean-Michel Bélot)
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