(Paris) Global stock markets are trending higher on Thursday, pending the release of US inflation figures for July, due at 8:30 a.m.
In Europe, Paris climbed 0.79% and Milan 0.77%, Frankfurt took 0.41% and London was perfectly stable around 6:40 a.m. (Eastern time).
Futures contracts for the three major New York Stock Exchange indices are up about 0.5% ahead of the open. The day before, American investors had again been cautious and had avoided taking risks.
In Asia, Tokyo gained 0.84%, Shanghai 0.31%, while Hong Kong ended flat (0.01%).
“All eyes are on the U.S. Consumer Price Index (CPI) report, with traders wondering if the Federal Reserve is done with rate hikes,” said Oanda analyst Craig Erlam.
The CPI consumer price index is one of the main measures of inflation and plays a central role in the evolution of monetary policy.
The US central bank remained vague on its intentions for September, leaving the door open to a further hike in its key rates, a pause before a subsequent rise or the announcement of the end of its monetary tightening cycle.
Analysts expect inflation to come in at 3.3% YoY in July, down from 3% in June, and 4.8% for so-called core inflation which excludes volatile prices energy and food.
“A sharp rise” in inflation, especially the underlying part, “could make investors nervous, but it would have to be really significant to start looking at a rate hike next month,” Erlam comments. .
Sovereign debt interest rates are fairly stable in the bond market around 6:35 a.m. EST.
On the foreign exchange market, the dollar lost 0.44% to 1.1023 dollars for one euro.
In Frankfurt, the industrialist Siemens fell 6.98% after reporting results below analysts’ forecasts, despite net profit of 1.4 billion euros in the third quarter of its staggered financial year.
The insurer Allianz (3.22%) reported a net profit up 18.2% in the second quarter to 2.3 billion euros, driven by the performance of its property and casualty insurance and Life/ Health.
The industrial group Thyssenkrupp rose by 4.59% after raising its annual forecasts, driven by its automotive activity and the listing of its hydrogen subsidiary on the stock market.
Reinsurer Munich Re confirmed its annual targets despite net profit down nearly a third year on year, to 1.15 billion euros in the second quarter, and slightly below what analysts polled by Factset expected .
Jefferies analysts are pleased, however, that a solvency ratio came out better than expected. Munich Re shares gained 2.26%.
The telecommunications group Deutsche Telekom (-0.89%) revised its results forecast for 2023 upwards, despite a drop in its turnover in the second quarter, weighed down by its American subsidiary.
The Australian energy giant Woodside will try Thursday to relaunch negotiations with its employees, in order to avoid a strike which worries the markets.
On Wednesday, prices of liquefied natural gas (LNG) soared in Europe by almost 28%, after the announcement of a call for a strike on the offshore platforms of Woodside in Western Australia, which alone supply more 10% of the world’s LNG supply each month.
Around 6:35 a.m. (Eastern time), the Dutch TTF futures contract, considered the European benchmark, fell 2.56% to 38.81 euros per megawatt hour (MWh).
As for oil, its prices fell slightly the day after a rising session. The barrel of West Texas Intermediate (WTI) hit 10-month highs.
By 6:35 a.m. EST, WTI for September delivery was down 0.43% at $84.04.
The barrel of Brent from the North Sea, for delivery in October, fell 0.23% to 87.35 dollars.
