Rise on the horizon for China stocks and US inflation in support

Rise on the horizon for China stocks and US inflation in support

A chart of the German stock index DAX is taken at the Frankfurt Stock Exchange

A chart of the German stock index DAX is taken at the Frankfurt Stock Exchange

by Laetitia Volga

PARIS (Reuters) – Major European stock markets are expected to open higher on Friday after Beijing eased some measures against COVID-19 and encouraged inflation figures in the United States, boosting hopes of a dip. Spare.

Futures point to an increase of 1.08% for the CAC 40 in Paris, 0.71% for the Dax in Frankfurt and 0.34% for the FTSE in London.

Index futures accelerated after the Chinese authorities announced a reduction in the duration of the quarantine imposed on contacts and travelers from abroad.

In the Chinese markets, the announcement was met with a sharp rise in stock market indices: the CSI 300 Index rose 2.79% and the Shanghai SSE Composite Index rose 1.69%.

“The reopening is likely to be a long process. However, it is an important step in the right direction,” said Zhang Jiuyi, chief economist at Pinpoint Asset Management.

The Stoxx 600, the benchmark in Europe, ended 2.75% higher on Friday, at its highest level since the end of August, after announcing a larger-than-expected slowdown in US inflation in October, which could encourage the Federal Reserve. On choosing to raise lower interest rates.

The CPI rose 7.7% in a year, versus +8.2% in September, marking the slowest increase since January.

Fed fund futures indicate that markets are pricing in a 71.5% chance of a half-point rate hike at the December meeting.

On Wall Street

The New York Stock Exchange had its best session in more than two and a half years on Thursday after monthly figures for US inflation and hope that the Federal Reserve will adjust interest rate hikes. [.NFR]

The Dow Jones increased 1,201.43 points, or 3.7%, to 33,715.37 points, the Standard & Poor’s 500 increased 207.8 points, or 5.54%, to 3,956.37 points, and the Nasdaq Composite increased 760.97 points, or 7.35%, to 11,114.15.

We have to go back to the spring of 2020, a period marked by significant market volatility at the start of the COVID-19 pandemic, to find such amazing deals.

The CBOE volatility index fell nearly ten points to 23.53, the lowest level since mid-September.

All of the major S&P-500 segment indicators ended in the green, but the most exciting performance benefited from the parts most sensitive to changes in interest rates: Untethered consumer products gained 7.7%, high-tech 8.33%, and the real cabin. The property is 7.75%.

Among the big “tech” companies, Salesforce won with 10.02%, best performer in the Dow Jones Index, Microsoft 8.23%, and Apple 8.9%.

Futures indicate gains of 0.56% for the Dow Jones Index, 0.66% for the Standard & Poor’s-500 Index and 0.8% for the Nasdaq.

In Asia

On the Tokyo Stock Exchange, the Nikkei rose 2.98% and hit a two-month high during the session, led by stock growth in the wake of Wall Street.

Exchange / Prices

The dollar is still in a downtrend against a basket of major currencies (-0.43%) after dropping 2.12% the day before in reaction to US inflation figures.

The euro, which gained nearly 2% on Thursday, rose 0.25% to $1.0238

The Chinese yuan, buoyed by announcements of easing some measures against COVID-19, is developing to its highest level in seven weeks.

US bond markets are closed for Veterans Day. On Thursday, the 10-year Treasury yield ended the session at 3.829%, its lowest in five weeks.

In Europe, the German 10-year-old is trading at 2.016% in early trade after a two-week low of 1.979% on Thursday.


Oil prices also benefit from the announcements by the Chinese authorities regarding measures to prevent the Corona virus: Brent gains 2.48% to $ 95.99 a barrel, and US light crude (WTI, WTI) gives 2.57% to $ 88.69.

(Laetia Volga)

#Rise #horizon #China #stocks #inflation #support

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