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Rise in sight in Europe after Wall Street, US employment to follow

Rise in sight in Europe after Wall Street, US employment to follow
Written by madishthestylebar

EUROPEAN STOCK EXCHANGES EXPECTED ON THE RISE

PARIS (Reuters) – The main European stock markets are expected to rise on Friday after the positive close the day before on Wall Street, but caution could limit the differences until the publication of monthly employment figures in the United States, very expected at a time when investors are worried about the risks of recession and two weeks before the Federal Reserve’s decisions.

Futures contracts on indices suggest an increase of 0.57% for the CAC 40 in Paris, 0.83% for the Dax in Frankfurt and 0.76% for the EuroStoxx 50. The London Stock Exchange, it, will remain closed.

The EuroStoxx 50 fell by 0.36% over the first four sessions of the week and the CAC 40 by 0.24%.

After Thursday’s unconvincing figures on job creations in the private sector and applications for unemployment benefits in the United States, the Labor Department is due to publish its monthly employment report at 12:30 GMT.

Economists and analysts polled by Reuters forecast an average of 325,000 non-agricultural job creations after 428,000 in April, as well as a decline in the unemployment rate to 3.5% and a slight deceleration in wages, including the increase over one year should return to 5.2%, a level that would not allay inflationary fears.

Today’s numbers will of course be read for their potential influence on Fed decisions as markets ponder the possibility of a slower rate hike from September.

“For equities, at this time, anything that can be interpreted as likely to limit Fed tightening would be judged as support,” said Rob Carnell, director of Asia research at ING. “So bad macro numbers become good for stocks.”

On Thursday, U.S. central bank Vice President Lael Brainard said half-point rate hikes this month and July would be reasonable and there was little chance of a pause. be observed in September.

In Europe, the morning will be animated, among other things, by the final figures of the PMI indices for services. In Germany, foreign trade statistics are better than expected with a 4.4% rebound in exports in April, against +1.5% expected.

IN WALL STREET

The New York Stock Exchange closed sharply higher on Thursday after a turbulent session, the return on the most heavily sanctioned sectors in recent months, such as that of high technologies, having ended up winning.

The Dow Jones Index gained 1.33%, or 435.05 points, to 33,248.28, the Standard & Poor’s 500 gained 75.67 points (+1.85%) to 4,176.9 and the Nasdaq Composite rose jumped 322.44 points (+2.69%) to 12,316.90.

Ten of the 11 major sectors of the rating ended in the green, that of unconstrained consumer goods taking 3.03% and that of raw materials 2.69%.

Tesla gained 4.68% and Nvidia 6.94%. The latter contributed strongly to the 3.6% increase in the Philadelphia Semiconductor index, which ended at its highest in a month.

Microsoft ended with an increase of 0.8% despite the downward revision of its earnings forecasts, which it explains by the impact of the appreciation of the dollar.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index ended up 1.27%, driven by Fast Retailing (+5.86%), the parent company of Uniqlo, which reported a jump of 17, 5% of its same-store sales in May.

Over the whole week, the Japanese market recorded an increase of 3.66%, its best weekly performance since March.

Mainland China and Hong Kong markets are closed as the day is a public holiday.

EXCHANGES/RATES

The dollar lost ground against other major currencies (-0.11%) pending US employment figures, after losing nearly 0.7% on Thursday as Wall Street rose.

The euro is hovering around $1.0750.

In the bond market, US benchmark yields changed little after a lackluster session on Thursday, with those on 20- and 30-year securities ending slightly higher while shorter maturities retreated. The ten-year is displayed at 2.9149% and the two-year at 2.6422%.

The German ten-year is down slightly in early trading at 1.228%.

OIL

The oil market is slightly down following the decision of OPEC+ to increase its production by 648,000 barrels per day (bpd) in July and August. This increase, although larger than initially expected, only partially reassures investors about the cartel’s ability to respond to the drop in Russian exports and the expected recovery in Chinese demand.

Brent fell 0.42% to 117.12 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.52% to 116.26 dollars.

(Written by Marc Angrand, with Kanupriya Kapoor)

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