PARIS (Reuters) – Wall Street is expected to be mixed on Friday, while European stock markets fall, worried about the trajectory of the American and Chinese economies.
New York index futures suggest a hesitant Wall Street open, with the Dow Jones and Standard & Poor’s 500 flat, while the Nasdaq fell 0.21%.
In Paris, the CAC 40 dropped 0.65% to 7,385.02 points around 10:25 GMT, against a drop of 0.30% for the Dax in Frankfurt. The FTSE in London fell 1.02% as GDP figures beat consensus raising fears of further rate hikes.
The pan-European FTSEurofirst 300 index sank 0.67%, against 0.73% for the EuroStoxx 50 and 0.69% for the Stoxx 600.
Markets are digesting US inflation data, which shows that disinflation is continuing across the Atlantic, and which argues in favor of a halt to rate hikes by the Federal Reserve.
However, other indicators are clearly deteriorating, and raise concerns about the state of activity.
“A second straight round of benign inflation data reinforces our optimism that the Fed’s rate hikes are ending and the US economy is likely to make a soft landing,” said James Knightley, chief economist at ING.
“However, we remain concerned about the economic outlook, in particular the sudden stop in credit growth”. slowdown in activity is accentuated, which weighs on sentiment.
THE VALUES TO FOLLOW IN WALL STREET
Amedisys said Thursday it received a request for additional information about its $3.3 billion takeover by UnitedHealth from the US Department of Justice on August 4.
VALUES TO FOLLOW IN EUROPE
The commodities sector posted the worst performance of the Stoxx 600 sectors, down 1.64%, as the current measures to support the Chinese economy were deemed insufficient by the markets.
UBS will not need the guarantee of more than 9 billion euros granted by the Swiss State against losses linked to the takeover of Credit Suisse, which supports the group’s share price, up 4.66%.
The computer group Bechtle soars 6.15%, leading the Stoxx 600, after better than expected second quarter results, which allow it to confirm its forecast of a growth of 5 to 10% of its turnover this year.
RATE
Rates are moving up on both sides of the Atlantic as investors seek to assess the impact of lower US inflation as the US economy shows signs of weakness.
The ten-year Treasury yield rose 2.2bp to 4.1036%, its lowest in a week, the two-year is now at 4.827%.
The German ten-year yield rose 5.8 bp to 2.587%, while that of the two-year rate rose 2.5 bp to 2.996%.
CHANGES
Like interest rates, exchange rates are stable as markets digest inflation data. The dollar strengthened by 0.05% against a basket of benchmark currencies, the euro rising 0.08% to 1.0988 dollars.
The pound sterling rose 0.24% to 1.2705 dollars after the publication of the British GDP.
PETROLEUM
Oil continues to rise, with the International Energy Agency maintaining its crude demand growth forecast for 2023 in its latest monthly report.
Brent nibbling 0.36% to 86.71 dollars a barrel, US light crude (West Texas Intermediate, WTI) advancing 0.37% to 83.13 dollars.
(Writing by Corentin Chapron, editing by Kate Entringer)
2023-08-11 11:07:19
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