Stocks rise on US jobs wait – 2022-04-01 13:28

PROGRESS OF EUROPEAN MARKETS HALF SESSION

PROGRESS OF EUROPEAN MARKETS HALF SESSION

by Marc Angrand

PARIS (Reuters) – Wall Street is expected to be in the green and European stocks are expected to rise mid-session on Friday, the prospect of good jobs numbers in the United States outweighing concerns about inflation, slowing growth and the war in Ukraine.

Futures contracts on major New York indices point to a rise of 0.44% for the Dow Jones, 0.47% for the Standard & Poor’s 500 and 0.51% for the Nasdaq.

In Paris, the CAC 40 gained 0.56% to 6,697.03 points at 11:00 GMT. In London, the FTSE 100 is up 0.16% and in Frankfurt, the Dax is up 0.34%.

The EuroStoxx 50 index rose 0.66%, the FTSEurofirst 300 0.49% and the Stoxx 600 0.55%.

After registering its first quarterly fall in two years in January-March, European equities thus start the second quarter on a positive note despite the persistence of the factors that have dominated in recent weeks: geopolitical tensions linked to Ukraine, inflation record or rise in bond yields.

The stock markets thus welcomed the first estimate of inflation in the euro zone in March without appreciable reaction, although higher than expected at 7.5%, a new record.

The main event of the day will be at 12:30 GMT the publication of the monthly report of the US Department of Labor, which should, according to the Reuters consensus, confirm the renewed dynamism of employment in the United States but also an acceleration of the rise in salaries, and thus fuel the debate on the path of the Federal Reserve’s interest rates.

The wait for these statistics obscures the final results of the PMI surveys in Europe, which do nothing more than confirm the slowdown in growth linked to the conflict in Ukraine and the rise in prices.

VALUES IN EUROPE

All the major sectors of the European rating progressed mid-session, with the best performances being the distribution compartment, which gained 2.37%, and that of banks (+1.49%), which once again benefited from the rise in bond yields.

In Paris, Société Générale takes 1.29%, Crédit Agricole 1.08%. Santander falls 2.52% after confirming objectives for 2022; the stock also benefits from the increase in rating from Credit Suisse.

Sodexo fell 8.35%, the biggest drop in the Stoxx 600, following the release of its half-year results. The restaurant giant lowered its forecast citing uncertainties related to COVID-19 and Ukraine.

QUALIFY

US Treasury yields rose sharply ahead of the jobs report, with the 10-year up eight basis points at 2.4078% and the two-year up nearly ten points at 2.3834%.

The trend is comparable but less marked in the eurozone market, although the higher-than-expected inflation figures have favored the rise in yields: the ten-year German has slightly more than two points to 0.587% but remains far from its maximum on Tuesday (0.741%).

CHANGES

The dollar rises slightly on expectations of US employment data, which could reinforce the scenario of an acceleration in the Fed’s rate hike, perhaps already at its meeting in early May.

The dollar appreciated 0.12% against a benchmark basket and the euro fell to 1.1060.

PETROLEUM

After trading in the red at the beginning of the day, the oil market is now around the equilibrium pending the conclusions of the meeting of the International Energy Agency (IEA) dedicated to the generalization of the use of the strategic reserves of the Western countries, following the American initiative.

Brent gained 0.23% to $104.95 a barrel, while US light crude (West Texas Intermediate, WTI) was almost flat at $100.23.

One and the other currently show their biggest weekly losses for two years, falls of 13% and 11.7% respectively.

(XXXX report, French version Marc Angrand)

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