Former Paris Stock Exchange building
by Bertrand De Meyer
The main European stock markets are expected to fall at the opening on Friday, with investors digesting the monetary policy decision of the European Central Bank (ECB) while the Federal Reserve (Fed) meets next week.
Futures contracts suggest an opening down 0.30% for the Parisian CAC 40, 0.20% for the FTSE in London, 0.08% for the Dax in Frankfurt, and 0.14% for the 'EuroStoxx 50.
Investors are catching their breath after busy monetary news this Friday which should also see French President Emmanuel Macron appoint a new Prime Minister.
The ECB lowered its rates again on Thursday for the fourth time since the start of the year, without surprising the market, and left the door open to further easing.
The Fed meets on December 17 and 18 after indicators published this week showed a slight reacceleration of consumer prices in November and an increase in unemployment claims the week of December 7.
Investors should take the time to analyze these mixed macroeconomic indicators as the market anticipates a rate cut next week but uncertainty dominates over the pace the institution will follow thereafter.
The session will also be rich in indicators on the Old Continent while François Villeroy de Galhau, governor of the Bank of France and member of the Governing Council of the ECB, must speak before the opening of the session.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange, driven for months by optimism surrounding technology stocks, caught its breath on Thursday, with the three major indices ending down.
The Dow Jones index fell 0.53%, or 234.44 points, to 43,914.12 points.
The broader S&P-500 lost 32.94 points, or 0.54%, to 6,051.25 points.
The Nasdaq Composite, which closed for the first time above 20,000 points on Wednesday, returned below this threshold by falling 132.05 points (-0.66%) to 19,902.841 points.
IN ASIA
In Tokyo, investors consolidated after the Nikkei crossed the key 40,000 level for the first time since October 15 in the previous session.
The Tokyo Stock Exchange ended down 0.95%.
Markets are trending downward in China, with investors awaiting concrete action following promises of economic recovery.
The Hong Kong Hang Seng index declined by 1.79%, the Shanghai SSE Composite fell by 1.86%, the CSI 300 fell by 2.22%.
RATE
US bond yields are stable ahead of the Fed's monetary policy meeting.
The ten-year Treasury yield declined -0.4 bps to 4.3199%, while the two-year yield rose 0.4 bps to 4.1902%.
The ten-year German Bund yield, benchmark for the euro zone, gained 2.2 bp to 2.2120%.
CHANGES
The dollar is trading at its highest level in two and a half weeks, supported by expectations of a Fed rate cut next week and then a patient approach before further cuts.
The dollar gained 0.11% against a basket of reference currencies, the euro eroded by 0.06% to 1.0461 dollars, and the pound sterling lost 0.28% to 1.2634 dollars.
In Asia, the yen declined by 0.07% to 152.73 yen per dollar, the Australian dollar lost 0.06% to 0.6363 dollars.
OIL
Crude prices are stable as additional sanctions against Iran and Russia have increased supply concerns while Chinese stimulus measures are expected to support demand.
Brent rose by 0.07% to $73.46 per barrel and American light crude (West Texas Intermediate, WTI) rose by 0.13% to $70.11.
MAIN ECONOMIC INDICATORS ON THE AGENDA FOR DECEMBER 13:
COUNTRY GMT PREVIOUS CONSENSUS PERIOD
FR 07:45 November -0.1% +0.1%
+1,7% +1,7%
EZ 10:00 a.m. October -0.1% -2.0%
-1,9% -2,8%
(Written by Bertrand De Meyer, edited by Blandine Hénault)
