A view of the Palais Broniard, the former Paris Stock Exchange
PARIS (Reuters) – The main European stock markets were expected to rise on Thursday with the prospect of a rebound on Wall Street the day after a limited fall in anticipation of new indicators of the economic situation in the United States.
Index futures suggest gains of 0.94% for the CAC 40 in Paris, 0.97% for the Dax in Frankfurt, 0.59% for the FTSE 100 in London and 1.02% for the EuroStoxx 50.
Questions about the economic slowdown and the scale of future rate hikes remain at the heart of investors’ decisions, but Wednesday’s session showed that sentiment remained volatile, with optimism from the start of the week giving way to concerns after the US ISM services index edged slightly above consensus.
Statements by Mary Daly, chairman of the Federal Reserve System of San Francisco, who emphasized the central bank’s determination to reduce inflation, also influenced the trend.
After the close on Wall Street, Rafael Bostick, his Atlanta counterpart, said the fight against inflation was “still in its infancy.”
Awaiting the monthly US employment report on Friday, the upcoming session will be livened up by, among other things, retail sales statistics in the euro area (at 09:00 GMT), the publication of the minutes of the October meeting of the European Central Bank (at 11:30 GMT) and US jobless claims figures (at 12:30 GMT).
In Germany, industrial orders fell 2.4% in August, a sharper-than-expected decline.
ON WALL STREET
The New York Stock Exchange ended in the red on Wednesday, as recession risks and the prospect of further interest rate hikes regained the upper hand after a week marked by a marked increase in risk appetite.
However, at the end of the session, the decline was reduced by cheap buying, and the three indices even briefly turned positive.
The Dow Jones Industrial Average fell 0.14%, or 42.45 points, to 30,273.87, the Standard & Poor’s 500 lost 7.65 points, or 0.20%, to 3,783.28 and the Nasdaq Composite fell 27.77 points (-0.25%) to 11,148.64.
Twitter (-1.30%) , on the other hand, took a hit after surging 22% on Tuesday after relaunching Elon Musk’s $44 billion buyout offer. Tesla, led by a billionaire, lost 3.45%.
Index futures so far signal a 0.3% open for the Dow Jones, 0.32% for the Standard & Poor’s 500 and 0.44% for the Nasdaq.
In Tokyo, the Nikkei index rose 0.7%, a fourth straight rebound session, and posted its best close since Sept. 20, boosted by energy and semiconductor stocks.
Markets in China remain closed and will not reopen until Monday.
Treasury yields in Asian trading were little changed after a rebound on Wednesday, helped by intraday indicators in the US.
The 10-year, which recovered nearly 14 basis points per session, is at 3.7491%, while the 2-year is at 4.1459%.
In Europe, the ten-year rate returned to 2.022% in early trade, erasing a small part of the previous day’s gains.
The dollar, which has fluctuated since the start of the day, is now trending lower against other major currencies (-0.14%) after benefiting from Wednesday’s US economic data and remarks from Fed leaders.
It is trading about 4% below the 20-year high reached last week.
The yen is practically stable, but the euro recovers against the dollar (+0.25%) to 0.9907.
Sterling (-0.03%) was unscathed by Fitch’s decision to cut the UK sovereign rating outlook from “stable” to “negative”, five days after a similar decision by S&P Global.
Oil prices are stabilizing after three straight sessions of gains that saw Brent crude recover to mid-September levels after OPEC+ agreed to cut total output by about two million barrels a day from next month.
Brent lost 0.06% to $93.31 a barrel, and US light oil (West Texas Intermediate, WTI) – 0.14% to $87.64.
(By Mark Angran, Editing by Keith Entringer)