EUROPEAN SCHOLARSHIPS ON THE RISE AT MID-SESSION
PARIS (Reuters) – Wall Street is expected in dispersed order Friday at the opening with a pullback in sight for the Nasdaq after the Snap and Intel warnings, as European stock markets benefit from a renewed appetite at mid-session for risk thanks to Evergrande and company results.
The New York index futures signal an increase of around 0.15% for the Dow Jones and the S & P-500 but a decrease of 0.2% for the Nasdaq. In Paris, the CAC 40 gained 1.03% to 6,755.12 points around 11:20 GMT, the highest since September 3. In Frankfurt, the Dax takes 0.87% and in London, the FTSE takes 0.6%.
The pan-European FTSEurofirst 300 index rose 0.73%, the euro-zone EuroStoxx 50 rose 1.03% and the Stoxx 600 0.73%.
The latter, which is heading for a new increase over the week, has evolved to the highest for a month and a half, thanks among other things to the relief that welcomed the latest developments in the Evergrande file, the real estate group seeming to have avoided a default for the moment. payment with uncertain repercussions.
“While this is good news as the default was averted for this weekend, uncertainty is likely to remain high until the situation of Evergrande and other real estate companies in China becomes clearer.” , commented MUFG in a note.
Investors seem to be ignoring the preliminary results of the HIS Markit survey showing that growth in euro area activity slowed in October, particularly in the face of accelerating inflation. [L8N2RI24Q]
Inflation expectations in the monetary bloc have reached new highs over seven years, which favors the rise in bond yields within a week of the European Central Bank monetary policy meeting.
The results of companies in Europe once again contributed to the growth of the indices. Profits of the Stoxx 600 companies are expected to have increased 47.6% in the third quarter to 96.1 billion euros, from 46.7% expected last week, according to data from Refinitiv IBES. VALUES TO FOLLOW AT WALL STREET
Social networks Twitter and Facebook lost nearly 4% before the opening of Wall Street.
Intel also plunges 10.3% in pre-market after having published a quarterly turnover below expectations and said to expect a decline in its margins for the years to come.
VALUES IN EUROPE
The European index of unconstrained consumer goods gained 0.93%, one of the best performances of the day, thanks to L’Oréal: the giant of the cosmetics industry took the lead of the CAC 40 with a jump of 5, 84% after better than expected sales growth in the third quarter, fueled by strong demand for its high-end products.
Conversely, Renault is among the last in the ranking of the Paris index with a decline of 1.78%, the automaker having indicated that the impact of chip shortages would be twice as heavy as expected.
Rémy Cointreau gained 2.07% and Vivendi 1.68% after the publication of an increase in quarterly turnover.
Ipsos and Klépierre are up 7% and 8.6% respectively after their quarterly publications.
In London, IHG lost 3.1%, analysts highlighting an underperformance of the hotel group compared to the sector.
With the renewed appetite for risky assets, the dollar lost 0.16% against a basket of international currencies. The euro gained 0.18% to 1.1642 dollars.
The pound fell briefly against the greenback in reaction to the surprise drop in UK retail sales. But the currency has returned to equilibrium after statements to the Financial Times by the chief economist of the Bank of England, Huw Pill, that inflation could exceed 5%.
Rising inflation expectations are pushing bond yields higher. Ten-year Bunds hit their highest level since May 2019 at -0.069%, before falling back to -0.09%.
In the US market, the ten-year gained one basis point to 1.6784%.
Crude prices erased losses suffered early in the session, concerns about tight supply and stocks fueling the uptrend: Brent gained 0.83% to $ 85.31 and US light crude (WTI) 0, 7% to 83.08.
(Laetitia Volga, edited by Marc Angrand)