MARKET POINT-Rebound in equities in sight but fears remain strong

by

(Photo credits: Adobe Stock – )

(Updated with futures contracts on European indices, closing of Chinese markets, opening of the bond market in Europe)

  • Rise in sight for European indices
  • Wall Street rebounded to end in the green, but US futures retreat
  • Caution remains in the face of fears over Ukraine/Russia by Laetitia Volga

PARIS, Feb 25 (Reuters) – Major European stocks are expected to open higher on Friday after Wall Street’s positive close, but deep concerns over Russia’s offensive in Ukraine are expected to continue to hang over markets in the aftermath of a significant drop in equities.

Futures contracts indicate an opening up 1.4% for the Paris CAC 40 .FCHI , 1.35% for the Dax in Frankfurt .GDAXI , 1.03% for the FTSE in London .FTSE and 1 .41% for the EuroStoxx 50 .STOXX50E .

The CAC 40 fell 3.83% on Thursday and the Stoxx 600 3.28%, both entering a correction phase – a drop of more than 10% from their last high – in reaction to the Russian military offensive in Ukraine.

Several dozen people have reportedly been killed since the start of the attack, while around 100,000 people have fled, as explosions and firefights rocked major Ukrainian cities.

Read also: SYNTHESE-Ukraine-Zelensky says to stay in Kiev, new sanctions against Moscow

The United States, Great Britain, Japan, Canada and Australia have unveiled new sanctions against Moscow, in addition to those announced earlier this week, which some analysts consider once again less severe than expected, in particular because they do not do not include the exclusion of Russia from the SWIFT interbank network.

Read also: No immediate blocking of Russia’s access to the SWIFT-Biden network

“US President Joe Biden’s Sanctions and Reluctance to Deploy Troops [en Ukraine] offer some relief. But this conflict will drag on and reinforce global inflationary pressures, which will keep central banks on a tightening path. [de leur politique monétaire]“said Kyle Rodda, an analyst at IG in Melbourne.

Signs of investor nervousness, Wall Street futures show an opening down 0.5% to 0.9% and the price of gold rises 0.7% XAU= .

VALUES TO FOLLOW: Stock market: values ​​to follow in Paris and Europe

AT WALL STREET

The New York Stock Exchange ended a session which had started very badly on the rise on Thursday, the announcement by US President Joe Biden of new sanctions against Russia after the launch of Moscow’s military offensive in Ukraine having favored a trend reversal. .NFR

The Dow Jones Index .DJI gained 0.28% to 33,223.83, the Standard & Poor’s 500 .SPX gained 1.5% to 4,288.7 and the Nasdaq Composite .IXIC rose 3.34% to 13,473 .59.

At the day’s low, they were down 2.59%, 2.62% and 3.45% respectively.

IN ASIA

After five consecutive sessions in the red, the Nikkei in Tokyo .N225 advanced 1.95% in the wake of Wall Street, but ended the week on a weekly decline of 2.4%.

Supported by healthcare and technology stocks, Chinese markets also ended higher, following their biggest drop in a month due to the invasion of Ukraine by Russian forces.

The Shanghai Composite Index .SSEC gained 0.63% and the Mainland China Large Stock Index CSI300 .CSI300 0.97%.

RATES/EXCHANGES

On the bond side, the yield on ten-year US Treasury bonds US10YT=RR fell two basis points to 1.9512% after falling in session Thursday to 1.846% before significantly reducing its decline.

Its German equivalent is stable in early trade, at 0.173%, against 0.111% at Thursday’s low. DE10YT=RR The dollar, which had clearly benefited from risk aversion on Thursday, fell 0.21% against a basket of international currencies the day after a jump of about 1%. .DXY

The euro is recovering around $1.121 after falling the previous day to 1.1105, its lowest level since June 2020 EUR= .

OIL

Oil prices are still on the rise, with tensions in Ukraine fueling fears over global supply.

The barrel of Brent LCOc1 gained 2.27% to 101.33 dollars after a high since August 2014 the day before at 105.79. US light crude CLc1 advanced 2.08% to $94.74, also a more than seven-year high, at 100.54.

    PRINCIPAUX INDICATEURS ÉCONOMIQUES À L'AGENDA DU 25 FÉVRIER
 PAYS    GMT    INDICATEUR                     PÉRIODE     CONSENSUS     PRÉCÉDENT
 FR      07h45  PIB définitif                  T4          +0,7%         +0,7%*
                - sur un an                                n.d.          +5,4%*
 FR      07h45  Dépenses des ménages           janvier     -0,5%         +0,2%
 FR      07h45  Inflation (1re estimation)     février     +0,4%         +0,2%
                - sur un an                                +3,6%         +3,3%
 EZ      09h00  Masse monétaire M3 en zone     janvier     +6,7%         +6,9%
                euro                                                     
                Crédit aux ménages en zone                 n.d.          +4,1%
                euro                                                     
                Crédit aux entreprises en                  n.d.          +4,2%
                zone euro                                                
 USA     13h30  Revenus des ménages            janvier     -0,3%         +0,3%
                Dépenses des ménages                       n.d.          -1,0%
         15h00  Indice de confiance du         février     61,7          61,7
                Michigan (définitif)                                     
 *première estimation
    

 (Reportage Laetitia Volga, édité par Jean-Michel Bélot)
 ((Rédaction de Paris; +33 1 49 49 50 00;))
 
((Les valeurs à suivre à la Bourse de Paris et en Europe  WATCH/LFR ))