MARKET POINT-Expected decline in Europe with doubts about the Fed and the economy

* European stock indices expected to fall * Wall Street plunged on Thursday, post-Fed enthusiasm wanes * Between the Fed, inflation and growth, markets worry again * Monthly US jobs report USA on the program by Laetitia Volga PARIS, May 6 (Reuters) – Major European stock markets are expected to open slightly lower on Friday after Wall Street indices fell the day before, amid concerns about rising rates in the United States, inflation and the economic outlook. The first indications available indicate a fall of 0.37% for the Parisian CAC 40 .FCHI , of 0.27% for the Dax in Frankfurt .GDAXI , of 0.3% for the FTSE in London .FTSE and of 0.33 % for the EuroStoxx 50. European indices closed in the red on Thursday after having nevertheless opened sharply higher, investors having been initially reassured by the statements of the President of the Fed, Jerome Powell, dismissing the prospect of future rate hikes of 75 basis points. But the gains have gradually eroded, optimism giving way to skepticism about the ability of the US central bank to curb runaway inflation without hurting the growth of the economy, already weakened in particular by the war in Ukraine. and health restrictions in China. “The risk of a policy error remains high: either the Fed is not tightening monetary policy quickly enough to fight inflation, or it is being too aggressive, which would bring the current economic cycle to an end,” David Chao said. , strategist at Invesco. The market will follow at 12:30 GMT the publication of monthly employment figures in the United States. Job creation should have fallen in April according to the Reuters consensus, which expects 391,000 jobs created after 431,000 in March. STOCKS TO WATCH: nL5N2WX5HJ ON WALL STREET The New York Stock Exchange ended sharply lower on Thursday, erasing its gains from the previous day, as investors fear that the rate hike announced by the Fed will not be enough to counter the surge inflation, forcing the central bank to take more drastic measures in the future. The Dow Jones Index .DJI fell 3.12% to 32,997.97 points, the S&P-500 .SPX lost 3.56% to 4,146.87 points and the Nasdaq Composite .IXIC fell 4.99% to 12,317.69 points. The Nasdaq recorded its worst session since June 2020, ending at its lowest since November 2020. The Dow Jones, for its part, had its worst session since October 2020. Alphabet GOOGL.O, Apple AAPL.O, Microsoft MSFT. O, Meta Platforms FB.O, Tesla TSLA.O and Amazon AMZN.O fell between 4.3% and 8.3%. But risk aversion has not only affected high-growth stocks, which have struggled since the start of the year due to concerns about the potential impact of higher rates on their growth. All eleven major sectors of the S&P-500 declined. Futures currently suggest a slightly lower Friday session. IN ASIA On the Tokyo Stock Exchange, which reopened after a three-day hiatus, the Nikkei .N225 gained 0.63%, driven by stocks in the finance and energy sectors, while the technology compartment bore the brunt of the decline on Wall Street the day before. In China, the CSI300 .CSI300 fell by 2.14% and the Shanghai Composite Index .SSEC by 1.89%, also penalized by Wall Street and by the determination of the Chinese authorities to maintain the zero COVID-19 policy. RATES The situation is calm on the bond front, where the yield on ten-year Treasuries US10YT=RR stands at 3.0591% after crossing the 3.1% threshold on Thursday for the first time since November 2018. dollar fell 0.06% against a basket of benchmark currencies after rebounding sharply the day before to reach a new 20-year high. .DXY The euro is almost unchanged, around 1.053 dollars EUR= . The pound is stabilizing against the dollar after falling 2% on Thursday to its lowest level in almost two years GBP= , following monetary policy announcements from the Bank of England, which painted a picture pessimistic for the British economy and warned of the risk of recession. OIL Oil prices rose slightly as supply concerns with a possible European embargo on Russian imports narrowly outweighed uncertainties about global economic growth. Brent LCOc1 gained 0.26% to $111.19 a barrel and US light crude (West Texas Intermediate, WTI) CLc1 gained 0.21% to $108.49. MAIN ECONOMIC INDICATORS ON THE AGENDA FOR MAY 6 COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS FROM 6:00 a.m. Industrial production March -1.0% +0.2% – over one year nd +3.01% FR 6:45 a.m. Payroll employment Q1 nd +0, 4% US 12:30 p.m. April job creations 391,000 431,000 non-agricultural Unemployment rate 3.5% 3.6% Average hourly wage +0.4% +0.4% – over one year +5.5% +5, 6% (Written by Laetitia Volga, edited by Tangi Salaün) ((Redaction of Paris; +33 1 49 49 50 00;)) ((Values ​​to follow on the Paris Stock Exchange and in Europe WATCH/LFR ))