New drop in sight in Europe ahead of US inflation.

New drop in sight in Europe ahead of US inflation.

Traders at the headquarters of the stock exchange operator Euronext

Traders at the headquarters of the stock exchange operator Euronext

PARIS (Reuters) – Major European stocks are expected to fall on Thursday in the wake of Wall Street and major Asian markets, calling for caution on monthly U.S. consumer price figures, while the latest Federal Reserve meeting confirmed its willingness to continue raising rates.

Index futures forecast a drop of 0.4% for the Frankfurt Dax, 0.34% for the London FTSE 100 and 0.45% for the EuroStoxx 50. As for the Paris CAC 40, it could give way around 0.4% according to the first indications available.

The big event of the day will be the publication, at 12:30 GMT, of the monthly consumer price statistics (CPI) for the United States. Reuters consensus expects an increase of 0.2% in one month and 8.1% in one year compared to +8.3% in August.

On Wednesday, the “minutes” of the US central bank’s September meeting showed that the FOMC (Federal Open Market Committee) remained in favor of a tightening policy and was more concerned about not doing enough than about do too much. although several of its members are committed to limiting the impact of the rise in interest rates on economic activity.

The minutes “did not mark the ‘dove’ turn expected by some market participants,” Joseph Capursi, head of international economics at the Commonwealth Bank of Australia, said in a note. “A possible turning point will depend on the inflation figures.”

Meanwhile, Fed Governor Michelle Bowman spoke more forcefully on Wednesday, explaining that she would remain in favor of raising rates if inflation showed no signs of slowing.

While awaiting the CPI, European investors will follow the evolution of the British markets, on the eve of the expected paralysis of bond purchases decided urgently at the end of September by the Bank of England, despite the persistent difficulties of certain investment funds. pensions. versus margin calls.

VALUES TO FOLLOW:

ON WALL STREET

The New York Stock Exchange closed lower on Wednesday after a rocky session, as the publication of the minutes of the latest Fed monetary policy committee favored the publication of the minutes.

The Dow Jones Industrial Average fell 0.1%, or 28.34 points, to 29,210.85, the Standard & Poor’s 500 lost 0.3% (11.81 points) to 3,577.03 and the Nasdaq Composite fell 9, 09 points (-0.09%) to 10,417.10.

Among the sectors most sensitive to changes in interest rates, the utilities sector lost 3.4% and the real estate sector lost 1.4%.

On the upside, PepsiCo gained 4.2% after raising its full-year revenue and profit forecast as price rises failed to curb demand.

Index futures suggest a slightly lower open for now.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index lost 0.47% less than an hour after closing, as Japanese investors also shied away from taking risks on the US CPI.

However, Toshiba gained 7.83% after information from the Kyodo news agency that a Japanese consortium led by the private equity fund Japan Industrial Partners offered to buy it for 2.8 trillion yen (19.7 billion euros).

In China, stocks are moving in a mixed order with the Shanghai SSE Composite up 0.11%, while the CSI 300 is down 0.39%, while in Hong Kong, the Hang Seng is down 1.15%.

CHANGES

The dollar is almost flat in Asian trade against a basket of benchmark currencies (-0.03%) ahead of US consumer price figures.

The yen recovers some ground against the dollar, but remains close to the 24-year low reached earlier in the day at 146.98 per dollar.

The euro is virtually unchanged at 0.9702 and the pound is stabilizing after the 1.25% rally it enjoyed on Wednesday, despite doubts about the ability of UK markets to withstand the suspension of emergency purchases. from the Bank of England, still due on Friday.

SPEED

US government bond yields rose slightly in the Asian market, to 3.921% for ten-year bonds and 4.3079% for two-year bonds.

They had retreated on Wednesday after the Fed minutes as better-than-expected US producer price data had earlier pushed them higher.

OIL

Le marché pétrolier évolue sans tendance claire en Asie après la baisse provoked mercy to return to its first plan of concerns about the evolution of demand, l’Opep et le département de l’Energie américain ayant tous deux revu en baisse leurs prévisions en The matter.

Brent was practically stable at $92.48 a barrel and American light crude (West Texas Intermediate, WTI) fell 0.11% to $87.17.

(Written by Marc Angrand)

#drop #sight #Europe #ahead #inflation

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