Wall Street
by Diana Mandia
Wall Street is expected to show slight progress and the European stock markets are in the green on Friday at mid-session, with the exception of London, supported in particular by energy-related stocks, which are benefiting from the surge in oil prices while fears of a worsening conflict in the Middle East are intensifying.
Futures on New York indices signal an opening up 0.13% for the Dow Jones, 0.27% for the Standard & Poor’s-500 and 0.39% for the Nasdaq.
In Paris, the CAC 40 gained 0.43% to 7,509.71 points around 11:39 GMT. In Frankfurt, the Dax rose 0.13% and in London, the FTSE 100 lost 0.58%.
The EuroStoxx 50 index is up 0.23%, the FTSEurofirst 300 is up 0.08% and the Stoxx 600 is up 0.02%.
Stock markets advance in the final session of the week, but investors remain on guard over a possible further escalation of tensions in the Middle East after President Joe Biden indicated on Thursday that Iran’s oil infrastructure could be a target as part of the response to Iran’s attack.
The American president’s comments did not fail to push up oil prices, already rising sharply since the salvo of missiles launched by Tehran on Israeli territory. The European sector on the STOXX thus advanced by 1.12%.
LBP AM analysts note, however, that despite the risks, the market remains focused on the evolution of growth and inflation due to their impact on monetary policies.
Indeed, investors are not turning their attention away from the European Central Bank (ECB), which will meet on October 17 to decide on borrowing costs, with traders largely betting on a reduction of 25 basis points, the third since those from June and September.
In France, industrial production and manufacturing output recorded a sharp month-on-month increase in August, which should provide some relief to the market at a time when the health of the Eurozone economy remains a source of concern due to the weakness of the activity figures of the services sector and German industry
VALUES TO FOLLOW AT WALL STREET
In the United States, markets remain on alert ahead of the release of the monthly jobs report at 2:30 p.m., which investors are watching closely for clues on how quickly the Fed is likely to cut interest rates. ‘interest.
Ports on the East Coast and Gulf began reopening Thursday evening after workers reached a wage deal with their employers, but clearing the cargo backlog may take time. The New York-listed shares of Zim Integrated Shipping Services fell 7% in pre-market trading.
Spirit Airlines for its part lost 44% before the market opened, the Wall Street Journal having reported that the group was in talks with bondholders on the conditions of a bankruptcy filing.
VALUES IN EUROPE
In Paris, Scor and Covivio climbed 3.1% and 4%, respectively, after being subject to recommendation increases.
Rémy Cointreau (-2.7%) and Pernod Ricard (-1.6%) are under pressure, with the French cognac sector saying it is “sacrificed” in the trade conflict between the EU and China, in response to the announced that the Commission had received sufficient support from member states to move forward with its surcharge on electric vehicles made in China.
The European automotive sector, on the verge of recording a fall of almost 7% this week after a burst of profit warnings, on the other hand reacted little.
Big luxury names and CAC 40 banks remain largely stable after Prime Minister Michel Barnier announced he was preparing “targeted” measures that will temporarily affect groups with turnover above €1 billion euros. Goldman Sachs writes in a note that only 15% of the revenues of CAC 40 companies are generated in France.
Elsewhere in Europe, the actions of maritime transport groups are falling after the agreement between dockers and port operators on the East Coast of the United States to end the strike. According to Yang Ji-hwan, an analyst at Daishin Securities, investors who expected freight prices to rise in the short term due to the strike are selling their stocks now that the protest movement has ended. AP Moeller-Maersk lost 5.4% and Hapag-Lloyd 13%.
DSV gains 8.2% after raising nearly $50 billion for the purchase of Schenker, the logistics arm of Deutsche Bahn.
RATE
Eurozone yields rose for the third day in a row after falling to multi-month lows earlier this week following the release of reassuring eurozone inflation figures.
The yield on the ten-year German Bund rose 5.3 basis points to 2.1900% and the two-year gained 6.2 to 2.1340%.
In the United States, the yield on ten-year Treasuries rose by 1.3 basis points to 3.8630% before the employment figures.
CHANGES
The dollar remained near a six-week high on Friday, ahead of the release of crucial jobs data that could dictate the path of U.S. interest rates, while the yen surged, capping a turbulent week marked by uncertainty about the outlook for Japanese monetary policy. The dollar lost 0.13% against a basket of benchmark currencies, while remaining close to its highest level in six weeks, supported by geopolitical fears and its status as a safe haven.
The euro gains 0.04% to 1.1035 dollars.
OIL
Oil prices are on track for a strong weekly gain on concerns over the situation in the Middle East, particularly Israel’s response to the Iranian attack earlier this week.
“There are growing concerns that Israel will target Iran’s oil infrastructure in its response, which could provoke further retaliation drawing neighboring states into the conflict,” says Ashley Kelty, an analyst at Panmure Gordon.
MAIN ECONOMIC INDICATORS ON THE AGENDA FOR OCTOBER 4:
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
US 12:30 p.m. Monthly employment report September 4.2% 4.2%
(Some data may have a slight lag)
(Writing by Diana Mandiá, editing by Kate Entringer)
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