Decline in sight in Europe, a series of results and indicators on the program

Decline in sight in Europe, a series of results and indicators on the program

A trader works at the stock exchange in Frankfurt, Germany.

A trader works at the stock exchange in Frankfurt, Germany.

by Laetitia Volga

PARIS (Reuters) – Major European stocks are expected to fall on Friday at the opening of a session again marked by earnings and new economic indicators that are likely to fuel inflation fears.

The first indications available point to a drop of 0.76% for the Paris CAC 40, 0.85% for the Frankfurt Dax, 0.67% for the London FTSE and 0.89% for the EuroStoxx 50. .

Amazon and Apple fell 16.7% and 2.7%, respectively, in after-hours trading after reporting disappointing forecasts for the final quarter of the year after Wall Street closed on Thursday. The global e-commerce giant cited, for its part, the impact of inflation on consumption. .

These announcements should penalize the New York Stock Exchange at the open, in particular the S&P 500 and the Nasdaq, giving them futures contracts down 0.63% and 0.92% respectively.

In Europe, the session will again be animated by numerous quarterly releases, including those from Airbus, Safran, Sanofi and Volkswagen.

The day also promises to be rich in indicators with, among other things, the first estimate of the evolution of GDP and inflation in France and Germany.

These data could fuel debates on the monetary policy of the European Central Bank, which, as expected, raised its rates three quarters of a point on Thursday.

ON WALL STREET

The S&P 500 and the Nasdaq both finished in the red on Thursday, again penalized by disappointing corporate results.

The Dow Jones index gained 0.61% to 32,033.28 points, supported by the advance of the industrial sector (+1.14%) and Caterpillar (+).

The S&P-500 lost 0.57% to 3,808.87 points and the Nasdaq Composite fell 1.63% to 10,792.68 points.

Tech heavyweight Meta Platforms slumped 24.6% after Facebook’s parent company painted a gloomy picture of its near-term outlook.

IN ASIA

The Nikkei on the Tokyo Stock Exchange (-0.77%) extended its losses after the Bank of Japan’s decision to maintain its low interest rate policy, against the grain of other central banks.

Corporate announcements also contributed to the drop in the stock index, in particular those of the industrial robot manufacturer Fanuc, which fell 5.62% after lowering its profit forecast.

Chinese markets are also trending lower, with the resurgence of the COVID-19 outbreak and tighter restrictions in several cities fueling concerns about the economic outlook.

Mainland China’s large-cap CSI 300 index lost 1.53% and the Shanghai SSE Composite lost 1.24%. They are currently posting a weekly loss of 4% and 2.65%, respectively, after falling sharply earlier in the week in reaction to Xi Jinping’s re-election as leader of the Communist Party.

“The increased concentration of power has investors weighing the risk of a continuation of the ‘zero-COVID-19’ policy, the lower support for the private sector, the increase in geopolitical tensions with the United States,” said UBS analysts in a note. .

CHANGES/FEES

The dollar fell slightly against a basket of benchmark currencies. The euro was up 0.23% at $0.9985 after falling more than 1% the day before in response to the ECB’s announcements.

“The ECB’s decisions were less aggressive than expected. Most of the surprise came from comments from Christine Lagarde (ECB President, editor’s note) saying that the ECB has already made significant progress in exiting stimulus” said Carol Kong, Commonwealth strategist. Bank of Australia.

On the bond side, the 10-year Treasury bill yield, at 3.9524%, is holding steady in Asian trade.

OIL

The oil market pulls back as China’s anti-COVID measures tighten but is headed for a gain for the week as a whole on supply concerns.

Brent lost 0.89% to $96.1 a barrel and US light crude (West Texas Intermediate, WTI) lost 1.2% to $88.01.

(Laetitia Volga, editing by Kate Enterringer)

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