“European indices should open without trend in the wake of the questions which still surround the consequences of Donald Trump’s arrival in power in the United States”commented John Plassard, investment specialist for Mirabaud.
Moreover, “the rise of the dollar causes tensions on all asset classes”explains Christopher Dembik, head of investment at Pictet AM France. And the dollar continued to soar on Thursday, still boosted by the prospect of inflationary policies – customs duties, tax cuts and an increase in the budget deficit – during Trump's second term.
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These latter factors are likely to keep rates high in the United States, which reinforces the attractiveness of the greenback. Around 07:15 GMT (08:15 Brussels time), the American currency gained 0.17% against the common European currency, to 1.0545 dollar for one euroat levels not seen for over a year.
On the session's agenda, investors will look to the publication of the PPI producer price index on Thursday for October at 1:30 p.m. GMT (2:30 p.m. Brussels time). “This index contains elements that feed into the PCE inflation index”deemed to be the most favored by the American central bank (Fed) for gauging price developments in the United States, comments Ipek Ozkardeskaya, analyst at Swissquote Bank.
