By Claude Chenjou
PARIS (Reuters) – Europe’s main stock markets are expected to be flat at the open on Friday, after two straight sessions in which green, profit-taking and some caution will dominate trade as the quarterly earnings season kicks off. United States of America.
According to the first indicators available, the Dax in Frankfurt should gain 0.05% at the opening, the FTSE 100 in London should gain 0.03% and the EuroStoxx 50 index should gain 0.02%.
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.
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 SSE Composite of Shanghai gained 0.56%, and the CSI 300 gained 0.81%.
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.
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 six basis points to 2.13%, its lowest close since mid-December.
The dollar rose slightly again on Friday (+0.13%), gaining against a basket of six international currencies.
The Japanese currency is trading at 128.99 yen per dollar, up 0.18% after hitting a fresh 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 prices eased slightly on Friday, but are on track to gain more than 6% overall for the week. 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 0.45% to $83.65 a barrel, US light oil (West Texas Intermediate, WTI) fell 0.33% to $78.13.
(Writing by Claude Chendjou, Editing by Kate Entringer)