Stocks in Europe are cautiously rising
PARIS (Reuters) – Europe’s main stock markets are expected to open slightly higher on Friday, once again benefiting from good U.S. readings published a day earlier, but the recovery in stocks should be less clear as major banks meet. convergence.power plants.
Early indicators available suggest a 0.32% rise for the Dax in Frankfurt, 0.15% for the FTSE in London and 0.29% for the EuroStoxx 50. CAC 40 is shown to be almost stable.
The European Stoxx 600 index is currently up 0.41% for the week and the CAC 40 has recovered 1.43% since Monday after a slight decline last week.
European and US markets on Thursday welcomed the latest data from the US as evidence that the US economy could be facing a soft recession rather than a severe recession.
The increasingly clear prospect that the Federal Reserve will slow the pace of monetary tightening next Wednesday as inflation slows has also supported stocks for several days.
But some strategists worry that the economic data will not yet show the full impact of the US central bank’s restrictive policy.
“The Fed’s rate hikes started about a year ago. It takes a year to 18 months for them to really kick in, so I think we’re going to see a slowdown in the market in the middle of the year, and there’s a good chance that GDP will be negative by the middle of the year. up,” said Chris Grisanti at MAI Capital Management.
Investors will therefore closely scrutinize monthly US household income and spending figures at 13:30 GMT, which include the Fed’s most watched PCE price index.
ON WALL STREET
The New York Stock Exchange ended higher on Thursday after a choppy session as investors digested the release of economic data and a slew of mixed corporate results ahead of the Fed’s monetary policy meeting next week.
The Dow Jones index increased by 0.61% to 33,949.41 points, the S&P-500 increased by 1.10% to 4,060.43 points, and the Nasdaq Composite increased by 1.76% to 11,512.41 points.
High-growth stocks rallied and led the Nasdaq into the green after Tesla (+11%) reported quarterly results that beat expectations and optimistic forecasts.
Against the background, IBM fell 4.5% after the announcement of the layoff plan, missing its annual cash flow target. Bed Bath & Beyond fell 22.2% after JPMorgan Chase sent the retailer a default notice.
Index futures were down 0.57% on the Nasdaq, weighed down by Intel, which presented a worse-than-expected outlook for both its PC and data center businesses after the close. The IT group lost 9.5% in after-session trade.
Standard & Poor’s-500 fell by 0.26%, and Dow Jones fell by 0.05%.
IN ASIA
On the Tokyo Stock Exchange, the Nikkei ended flat (+0.07%) as the earnings season urged investors to be cautious.
In Hong Kong, the Hang Seng index is stabilizing after hitting a nearly 11-month high. Markets in mainland China will remain closed until Monday for Lunar New Year celebrations.
RATE
US bond yields continue to rise as the resilience of the US economy bolsters the case that the Fed will maintain its inflationary stance in the coming months.
The yield on ten-year Treasuries rose almost four basis points to 3.5274% and the two-year rose almost two basis points to 4.193%.
CHANGES
The dollar bravely continued its gains against other major currencies (+0.12%) on Thursday thanks to better-than-expected figures for US gross domestic product (GDP) in the fourth quarter.
Thus, the euro fell by 0.17% to 1.087 dollars.
OIL
The oil market remains bullish on hopes of stronger-than-expected US economic growth in the fourth quarter and a quick recovery in Chinese demand.
Brent rose by 0.45% to $87.86 a barrel, US light crude oil (West Texas Intermediate, WTI) rose by 0.44% to $81.37.
KEY ECONOMIC INDICATORS ON JANUARY 27 DAILY:
CONSENSUS BEFORE COUNTRY GMT INDICATION PERIOD
FR 07:45 Confidence index for Jan 83 82
consumer
US 13:30 Consumer spending in December.
Family income +0.2% +0.4%
(Editing by Laetitia Volga, Nicolas Delame)
