Stocks head for first weekly rise in a month-June 24, 2022 1:47 pm

Wall Street expected to be green

Wall Street expected to be green

Paris (Reuters)-Wall Street is expected to be green and European stocks rose in the middle of Friday’s session.

With this increase, key indices should get their first positive weekly performance in a month.

New York’s major index futures are up 0.69% for the Dow Jones, 0.78% for the Standard & Poor’s 500 and 0.92% for the NASDAQ.

In Paris, CAC 40 rose 2.09% to 6,006.50 points around 11:00 GMT. In London, the FTSE 100 accounts for 1.39%, and in Frankfurt, Dax is 1.02% ahead.

The EuroStoxx 50 index is up 1.69%, the FTS Eurofirst 300 1.64% and the Stoxx 600 1.68%.

The latter, which set Thursday as the lowest record of the year, has so far increased by 1.47% a week after declining for three consecutive weeks, losing a total of 9.1%. CAC 40 rose 2.1% from Monday, after falling 9.7% between May 27th and June 17th.

In London’s commodity market, copper prices should fall 0.58%, with an overall fall of more than 7% in a week. That of tin is down 13.39% and that week’s decline can be around 25%.

These declines could give some investors expectations of lower inflation in the coming months, exempt major central banks from prolonging accelerating interest rate hikes, and thus prevent a recession.

However, the signs of a slowdown did not go away overnight. The Ifo Institute for Economic Research’s climate index in Germany fell sharper than expected in June, raising energy prices and threatening tensions for companies concerned about gas supplies.

Investors will also see the final results of the University of Michigan’s monthly survey of US household morale at 2:00 pm Greenwich Mean Time. The first estimate was the lowest ever, which blew the market two weeks ago.

European value

The largest sectoral growth in Europe is the media compartment with a 2.8% increase in the Stoxx index and that of health (+ 2.67%).

The latter benefits, among other things, from a 3.46% increase in sanofi after the announcement of the successful initial efficacy study of vaccine candidates against the omicron variant of coronavirus.

The distribution sector was down 0.22%, with Zaland down 6.81% after being warned about its second-quarter and full-year results.

Another notable decline was 9.57% of Italy’s oil services group, Saipem, which declared that without a capital increase, its financial resources could only continue for less than a year.

rate

US bond yields rose slightly following the two-week lows brought about by concerns over the US recession. It recovered almost 5 basis points in 10 years to 3.1114%, and recovered more than 5 points in 2 years. 3.0611%.

The increase is on the same order as 1.49% of Germans in 10 years, down nearly 25 basis points compared to the previous two sessions.

change point

The dollar has fallen against other major currencies (-0.13%) and is heading towards the first weekly fall of the month due to downward revisions to expectations for peak US interest rates. The market is currently betting on the federal funds rate. It will peak at around 3.5% in March next year and then drop by nearly 20 basis points between March and July 2023.

The euro hit $ 1.0531 (+ 0.08%) after a 0.4% drop on Thursday in response to lower-than-expected numbers in the European “flash” PMI index and Germany’s increased alertness to gas supplies. It has risen. ..

oil

Supply tensions are once again supporting oil prices, but they should not be enough to prevent the oil market from recording a decline for the second straight week, reflecting growing concerns about a recession.

Brent rose 1.55% to $ 111.76 a barrel and US light crude oil (West Texas Intermediate, WTI) rose 1.72% to $ 106.06.

(Some data may show a slight shift)

(Written by Marc Angrand, edited by Sophie Louet)

..