European equities without clear direction ahead of US inflation – 11/10/2022 at 14:11
by Claude Chendjou
PARIS (Reuters) – European stock markets moved in dispersed order at mid-session on Thursday, while Wall Street was expected to rise slightly in the context of caution pending the publication of monthly consumer prices in the United States while , from the political point of view, the control of the American Congress remains uncertain. Futures on the New York indices indicate a Wall Street opening of 0.11% for the Dow Jones, 0.17% for the Standard & Poor’s 500 and 0.37% for the Nasdaq on the day after a sharp decline in the indices.
In Europe, the market was volatile on Thursday, the decline was less pronounced than the previous day. The CAC 40 fell 0.41% to 6,404 at 12:40 GMT in Paris. In London, the FTSE fell 0.12%. In Frankfurt, the Dax, on the other hand, advanced 0.01%.
The pan-European FTSEurofirst 300 index gained 0.06%, while the euro zone’s EuroStoxx 50 fell 0.05%. The Stoxx 600 takes, for its part, 0.11%.
“We see some risk aversion in financial markets on Thursday pending US inflation data,” said Craig Erlam, market analyst at OANDA.
US Consumer Price (CPI) numbers for October will be released at 13:30 GMT. The Reuters consensus forecast a slowdown in the increase over the year to 8.0% after 8.2%, but a continuation of the acceleration of prices on a monthly basis to 0.6% after 0.4%.
This data will be scrutinized by investors to determine the future path of interest rates by the US Federal Reserve (Fed) as the market is torn between a 50 basis point or 75 basis point increase in the cost of credit this month .
In Europe, where inflation is also a concern, final figures for price increases will be known on Friday in Germany and next week in France.
PRICES IN EUROPE
The trend in Europe was mainly driven by corporate results, which were generally better than expected, allowing the Stoxx 600 to post a fourth consecutive weekly increase at this stage.
Engie is up 3.53% after raising its forecasts for this year and jumping its nine-month results. Crédit Agricole, on the other hand, fell 4.41%, the bank disappointed the market in the third quarter with its profit below expectations.
Elsewhere in Europe, AstraZeneca won 3.44%. The British laboratory raised its revenue forecast for this year after quarterly results that exceeded consensus.
German insurer Allianz gained 1.93% and meal delivery specialist Delivery Hero 2.73%, both driven by raising their outlook for this year, while automotive suppliers Knorr Bremse (+7.88 %) and Continental (+5.4%) is sought after. due to better than expected quarterly earnings.
On the downside, the financial publications of MERCK KGAA (-2.98%) and Aegon (-1.47%) were considered disappointing. Teleperformance is noteworthy with a 33.90% fall in its stock following the opening of an investigation in Colombia on the working conditions of employees of the TikTok platform, including the French specialist in call centers is a subcontractor.
The dollar rose against a basket of major currencies (+0.3%) ahead of US inflation numbers, heading for a second straight session of gains.
The euro fell sharply, by 0.69% to 0.9942 dollars, falling below parity with the greenback.
Bitcoin, which hit a two-year low of $15,632 on Wednesday in response to Binance abandoning plans to buy assets from Binance’s FTX cryptocurrency platform, rallied 3.33%.
Bond markets are directionless pending US inflation. The German Bund’s ten-year yield fell one point to 2.17% and the two-year yield, the most sensitive to changes in interest rates, edged up one point to 2.14%.
In the United States, the yield on the ten-year Treasury bill fell five points to 4.0943% and the two-year by about three points to 4.6015%.
Oil prices fell for a fourth straight session on fears of demand in China amid a resurgence of the COVID-19 epidemic in several of the country’s major cities, including Beijing.
Brent fell 0.47% to 92.21 dollars per barrel and US light crude (West Texas Intermediate, WTI) 0.59% to 85.32 dollars per barrel.
(Written by Claude Chendjou, edited by Kate Entringer)