Caution limits gaps before US employment – archyworldys

by Marc Angrand

PARIS (Reuters) – Wall Street is expected without much change while most European stock markets move down slightly in mid-session Friday before the publication of monthly US employment figures, the big meeting of the day on the markets .

Futures on major New York indexes signal an opening up 0.11% for the Dow Jones and 0.06% for the Standard & Poor’s 500 but unchanged for the Nasdaq.

In Paris, the CAC 40 lost 0.37% to 6,576.12 points around 10:50 GMT and in Frankfurt, the Dax fell 0.07% while in London, the FTSE 100 took 0.11%.

The EuroStoxx 50 index is down 0.2%, the FTSEurofirst 300 down 0.18% and the Stoxx 600 down 0.19%.

European equities had risen sharply on Thursday after the announcement of an agreement in the US Congress on raising the ceiling on public debt, validated a few hours later by the Senate.

But investors’ attention is now on the Department of Labor’s monthly report, which will certainly influence the decisions the Federal Reserve makes next month on its asset purchases and interest rates.

The Reuters consensus expects 500,000 non-agricultural job creations, an unemployment rate down to 5.1% and an increase of 0.4% over one month in the average hourly wage.

“All roads lead to the job creation figures, which will decide, in the eyes of the markets, whether the start of the ‘tapering’ of the Fed is acquired for December,” said Jeffrey Halley, senior analyst at Oanda.

The Stoxx 600 is so far up just over 1% for the week as a whole after falling 2.24% last week.

According to the latest figures from BofA, the “cash” part of investors’ portfolios was the big winner for the week to October 6 with an increase of $ 14.9 billion, against +13 billion for equities and +3.9 billion just for bonds.

VALUES IN EUROPE

Almost all of the major sectors of the European quotation are moving in the red, the only notable exceptions being for energy, where the Stoxx index gained 0.47% with the rise in oil prices, and automotive (+ 0.90%), driven by Daimler (+ 2.42%) after an increase in recommendation.

The biggest drop in the Stoxx 600 is for the tour operator TUI, whose London-listed stock fell 14.12% on the first day of its capital increase, launched at a steep discount.

The high technology compartment lost 0.52% against the backdrop of a marked rise in bond yields. Within the CAC, STMicroelectronics dropped 1.4%, Dassault Systèmes 1.64% and Capgemini 1.31%.

Distributor Casino also lost 4.02% after the announcement by its online commerce subsidiary Cnova (-6.71%) of the abandonment of its forecasts and the postponement of its capital increase.

In London, the Czech financial services group confirms that the general climate remains unfavorable for IPOs: the title has lost up to 10% compared to its sale price.

RATE

Yields on US Treasuries continue to rise, amplifying the movement started Thursday after the congressional debt deal, which prompted investors to turn to riskier assets.

Ten-year Treasuries thus briefly exceeded 1.6% for the first time since June.

The European bond market is following suit: the ten-year German, at -0.158%, is back to its four-month highs and the French came close to 0.2%.

See also: The estimated probability of an ECB rate hike as early as 2022 goes up

CHANGES

The dollar, trending upward at the start of the day after the rise in Wall Street and Treasuries yields, is now down 0.07% against the other major currencies.

The euro took the opportunity to rise to 1.1561 dollars against 1.1542 in mid-morning in Europe.

OIL

The oil market confirms its rebound after the profit taking suffered on Thursday, the fundamentals of supply and demand regaining the upper hand.

Brent gained 0.63% to 82.47 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.69% to 78.84 dollars.

Both should post a jump of nearly 5% for the week.

(Report Marc Angrand, edited by Blandine Hénault)