A trader works at the New York Stock Exchange (NYSE)
PARIS (Reuters) – Wall Street is expected to be down slightly as European stocks move in dispersed order mid-session on Thursday, as investors seem to want to pause between the turbulence of the past few days and a new series of American economic indicators before the Federal Reserve meeting next week.
Futures contracts on the main New York indices are currently pointing to a decline of 0.23% for the Dow Jones, 0.22% for the Standard & Poor’s 500 and 0.38% for the Nasdaq.
In Paris, the CAC 40 lost 0.41% to 6,196.69 points around 11:00 GMT and in Frankfurt, the Dax fell by 0.09% while in London, the FTSE 100 gained 0.26%.
The EuroStoxx 50 index is down 0.17% but the FTSEurofirst 300 and the Stoxx 600 are practically stable.
Europe’s broad Stoxx 600 index fell 2.8% over the previous two sessions after better-than-expected inflation data in the United States rekindled fears over the Reserve’s interest rate hike federal.
While Fed officials remain silent with less than a week to go before their monetary policy meeting, those at the European Central Bank (ECB) continue to stress the need for further rate hikes, much like the Vice -President of the institution, Luis de Guindos, for whom “determined action is essential to maintain the anchoring of inflation expectations”.
The rest of the session will be animated by, among other things, the American unemployment claims, retail sales and industrial production figures.
Wall Street could also find support in the announcement of a draft agreement between employers and unions in the rail transport sector, a sector threatened with a massive strike from Saturday, which prompted the White House to take hand the negotiations.
WALL STREET VALUES TO FOLLOW
VALUES IN EUROPE
The strongest sectoral increase of the day in Europe is for banks, whose Stoxx index gains 1.28%, thanks among other things to Spanish stocks, which benefit from press information according to which Madrid could modify a tax affecting the sector in order to avoid a dispute with the ECB.
Santander gains 2.63%, Bankinter 3.67%, Sabadell 4.41%.
Down, H & M yields 1.84% after quarterly sales below expectations.
Yields on US Treasuries remain on the upside: the ten-year takes more than three basis points to 3.4528% and the two-year nearly five points to 3.8288% after a new 15-year high at 3.846%.
Markets continue to favor the hypothesis of a three-quarters point hike in Fed rates next Wednesday, but the estimated probability of a 100-point hike is around 30%.
In Europe, benchmark yields also rise, to 1.753% for the ten-year and 1.518% for the German two-year.
The dollar is on the rise again after spending part of the start of the session in the red against the other major currencies (+0.13%), with expectations of a rise in US rates giving it solid support.
The euro thus returned to 0.9979 dollars after briefly regaining parity.
The yen, he erases part of the rebound caused Wednesday speculation about possible direct intervention by the authorities in the currency market.
The oil market is once again suffering from fears of deterioration in demand and the strength of the dollar.
Brent fell 0.94% to 93.22 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.01% to 87.59 dollars.
(Written by Marc Angrand)
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