Opening in minor changes seen in Europe (updated)

By Claude Chenjou

PARIS (Reuters) – Major European stock markets, excluding Paris, are expected to open flat on Friday after two consecutive sessions after some caution in the green, with profit-taking likely to dominate bourses. Quarterly results season in the US.

According to the first indicators available, the Paris CAC 40 should gain 0.32% at the opening, approaching the 7,000-point threshold crossed in Thursday’s session for the first time since February 2022.

The Dax in Frankfurt could gain 0.09%, and the FTSE 100 in London could gain 0.17%. The EuroStoxx 50 index is expected to increase by 0.1%.

Fourth-quarter results from Wells Fargo, Citigroup, Bank of America and JPMorgan are expected before the open on Wall Street.

Earnings of S&P-500 companies are expected to decline overall from 2021 amid slowing demand and high inflation, according to data from Refinitiv.

The release of the United States consumer price index (CPI), however, showed on Thursday that inflation in December slowed to 6.5% over the year after a peak of 9.1% in June. On a monthly basis, the CPI even fell last month (-0.1%) for the first time in more than two and a half years.

While these statistics gave some relief to investors, the dynamism of the US labor market remains cautious, with weekly jobless claims dropping unexpectedly on Thursday, and some analysts believe that further tightening of spending credit will be necessary. that it affects employment and banishes the specter of the price-wage spiral forever.

ON WALL STREET

The New York Stock Exchange ended higher on Thursday, supported by U.S. consumer price data.

The Dow Jones Industrial Average rose 0.64% or 216.24 points to 34,189.25. The broader Standard & Poor’s 500 rose 13.48 points, or 0.34%, to 3,983.09. For its part, the Nasdaq Composite rose 69.43 points (0.64%) to 11,001,105, its highest in a month, marking its fifth straight session in the green.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei fell 1.25% to 26,119.52, while the broader Topix lost 0.27% to 1,903.08.

In China, the Shanghai SSE Composite gained 1.01%, and the CSI 300 gained 1.41%.

As for the statistics, China’s exports fell 9.9% year-on-year in December due to a drop in global demand, while imports fell 7.5% year-on-year amid a resurgence of COVID-19. 19 epidemics weighing on domestic demand.

RATE

The yield on ten-year US Treasury bonds rose more than 12 basis points on Thursday to 3.46% on Friday in response to lower US inflation.

The yield on Japan’s 10-year government bond crossed the 0.5% ceiling set by the Bank of Japan as part of its yield curve control (YCC) policy on Friday. This increases pressure for the central bank, which meets next week, to abandon its ultra-accommodative policy. Japan’s 10-year yield rose to 0.54%, the highest level since mid-2015.

In Europe, the ten-year German Bund yield fell two basis points to 2.14% after losing six points on Thursday.

CHANGES

The dollar rose slightly on Friday against a basket of six international currencies (+0.02%).

The Japanese currency is trading at 128.56 yen per dollar, up 0.51% after hitting a new seven-month high of 128.65 in the session.

The euro fell slightly to $1.0838 (-0.07%), returning from a nine-month peak on Thursday.

OIL

Oil prices are steady on Friday and are on track to gain more than 6% for the week overall. They were driven by hopes of an easing in US interest rates and signs of rising demand in China, the world’s largest crude consumer.

Brent fell 0.1% to $83.95 a barrel, while US light oil (West Texas Intermediate, WTI) was stable at $78.39.

(Writing by Claude Chendjou, Editing by Kate Entringer)

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