European stocks are set to mitigate losses that week-2022 April 08 07:50

Mark Ungrand

Paris (Reuters)-Major European stock markets are expected to rise on Friday after a positive closing on Wall Street, and are therefore dominated by the prospect of a sharp rise in US major interest rates that week. It should reduce the loss.

Index futures contracts suggest an increase of 0.72% at Frankfurt’s Dax, 0.67% at London’s FTSE 100 and 0.86% at Eurostocks 50. The first indication available for CAC 40 in Paris.

The Paris market has lost 3.3% since the beginning of the week, which should end with the worst weekly performance of the month. The broad European STOXX 600 index fell 0.72% in four sessions.

Investors are worried about the impact of the Fed’s monetary tightening, even if the recovery in the US index at the end of Thursday’s session reassures it. This week’s economic event.

However, two Fed officials, Charles Evans and Raphael Bostic, gave a more modest speech on Thursday, the former mentioning the need for a “measured” approach.

The market is also beginning to position itself for the first quarter earnings season. In the United States, Standard & Poor’s 500 revenue is expected to increase by 6.4% year-on-year, according to Refinitiv data. IBES is the last three months of 2021.

If the economic agenda of the day is virtually empty, the market is information about the war in Ukraine, whether it is related to the expected Russian attack in the eastern part of Ukraine or economic sanctions targeting Moscow. Continue to pay attention to.

On wall street

The New York Stock Exchange closed at a high on Thursday, with rises from Pfizer (+ 4.3%), Microsoft (+ 0.6%) and Tesla (+ 1.2%) contributing to the rebound in the second half of the session.

The Dow Jones Industrial Average rose 0.25% to 34,583.57 points, the Standard & Poor’s 500 rose 0.43% to 4,500.21, and the Nasdaq Composite Index rose 0.06% to 13,897.30 points.

The S & P 500 was punished by questions related to the conflict in Ukraine and the tightening of monetary policy by the Federal Reserve, and spent most of the session in the red. Traders are currently setting a price increase of 50 basis points by 88.9% for the Fed’s key rate next month.

HP surged 14.8% after the announcement of its entry into Berkshire Hathaway, a group led by Warren Buffett.

In Asia

On the Tokyo Stock Exchange, the Nikkei Stock Average has risen 0.15% within an hour of the closing price, and investors are playing safely due to the lack of momentum on Wall Street, and are heading toward a fall of about 3% in a week. increase.

Toyota lost 3.74% after receiving a report from the Australian press citing heavy fines associated with defective particulate filters.

In China, this trend is hesitant between concerns related to the new wave of the COVID-19 epidemic and the hope of new economic stimulus measures that some analysts consider imminent. The Shanghai Composite Index and CSI300 have remained virtually unchanged.

Exchange / rate

The dollar continues to benefit from the prospect of a surge in U.S. interest rates, with the index measuring benchmark currency fluctuations against a basket rising 0.15% to 99.90, a 100-point threshold that hasn’t been exceeded since May. Is approaching. 2020.

The euro fell 0.17% to $ 1.0859, the lowest since March 8. A new package of EU sanctions on Russia has revived fears of the significant impact of the conflict on 27 economies. In addition, some traders prefer to be careful before the first round of the French presidential election.

In the Treasury market, US Treasury yields continue to rise, but have fallen below recent highs to 2.6622% in 10 years and 2.5074% in 2 years.

oil

Barrel prices have fallen, heading towards a fall of about 3% throughout the week as the International Energy Agency (IEA) countries announce that they will rely on strategic stockpiles as high as 240 million. .. Barrel in total.

Brent fell 0.68% to $ 99.90 a barrel and US light crude oil (West Texas Intermediate, WTI) fell 0.47% to $ 95.58.

The decline associated with the IEA’s decision to apply up to 1 million barrels per day from May to the end of the year could limit price increases in the short term, but still does not change market fundamentals. .. Point out many analysts.

(Edited by Matthieu Protard)

..