A trader works at CMC Markets in London
couple Pauline Foret
The main European stock markets are expected to rise on Friday at the opening, investors welcoming the publication of results from Amazon and Apple while being cautious before the presidential elections and the monthly report on employment in the United States, although A rate cut of 25 basis points by the Federal Reserve is the most likely scenario.
According to the first available indications, the Parisian CAC 40 could open slightly higher, gaining 0.12%.
Futures contracts also signal an opening close to equilibrium for the Dax in Frankfurt, which could lose 0.01% and for the FTSE, which advances 0.05%.
The day before, the world stock markets had finished in the red amid concerns about the profitability of artificial intelligence spending for “tech” giants such as Meta or Microsoft.
On this first day of November, certain indices could regain their composure after the publication, Thursday evening, of results above Wall Street expectations by Amazon and Apple, both of which saw their shares climb in out-of-session trading.
Investors are also awaiting the monthly employment report on Friday, the presidential election on November 5 in the United States and the next meeting of the Federal Reserve, which will take place the next day.
Subject to a major surprise in the jobs report, the markets are betting 94% on a Fed rate cut of a quarter of a percentage point after data showing the health of consumption in the United States. United as well as a reduction in price pressure.
On the results side, this busy week will close with figures from Chevron and Exxon Mobil.
Next week, the US presidential election will be the center of attention, with markets being mostly cautious while polls seem to indicate that the outcome of the vote is uncertain.
VALUES TO FOLLOW:
Casino, weakened by ongoing restructuring, including the sale or closure of unprofitable stores, announced on Thursday a drop in its sales in the third quarter.
A WALL STREET
The New York Stock Exchange ended lower on Thursday after Microsoft and Meta warned of increased costs linked to the development of artificial intelligence which could weigh on their future results, with the effect of curbing investor enthusiasm for the stocks technologies, drivers of the records set this year on Wall Street.
If Microsoft and Meta Platforms beat expectations in the third quarter, the press releases published after the close on Wednesday fueled concerns about the heavy investments made for AI. They lost 6% and 4.1% respectively on Thursday.
Estée Lauder experienced the worst session in its history, tumbling 20.9% after abandoning its forecasts for next year.
IN ASIA
Asian markets are moving cautiously this Friday after a busy week of results and a few days before the American presidential election.
The Tokyo Stock Exchange, which is an exception to the rule, ended down 2.63%, the rise in the yen weighing on the prospects of major Japanese exporters.
In China, the composite index of the Shanghai Stock Exchange increased by 0.3% and the CSI 300 of large capitalizations was almost stable, gaining 0.03%.
RATE
Long-term bond yields fell somewhat this Friday after experiencing several consecutive increases, as investors regained their confidence in the American economy.
The yield on ten-year Treasuries fell 1.5 basis points to 4.2686%, while the two-year rose 0.6 basis points to 4.1723%.
Across the Rhine, the ten-year German Bund yield rose 0.6 basis points to 2.3970%, while the two-year yield fell 1.3 basis points to 2.3030%.
CHANGES
The foreign exchange market is moving little this Friday while awaiting data on American employment, the dollar having so far strengthened significantly.
The dollar gained 0.02% against a basket of reference currencies.
The euro lost 0.08% to 1.0874 dollars.
OIL
Oil prices resume their rise this Friday as markets weigh the possibility that Iran is preparing a retaliatory strike against Israel.
Brent gained 1.95% to $74.23 per barrel and American light crude (West Texas Intermediate, WTI) gained 2.09% to $70.71.
(Written by Pauline Foret, edited by Kate Entringer)
