(Paris) Calm reigned on Thursday in financial markets awaiting a key US jobs report, the content of which should set stock market direction next week and guide the US central bank in its next rate decision in May.
The European indices were taking care of themselves before the long Easter weekend and the publication of this monthly report on Friday, a public holiday for the markets. Around 7 a.m. (Eastern time), Paris took 0.28%, Frankfurt 0.35% and London 0.73% the day after a negative session.
Earlier, recession fears again weighed on Asian markets.
On Wall Street, major index futures signaled a stable open for the Dow Jones and S
Since the beginning of the week, several statistics illustrating the economic slowdown in the United States have fueled fears of recession, investors wondering if the American central bank has not gone too far in monetary tightening in order to fight inflation. .
This results in boosting government bonds and reducing appetite for risky assets such as equities.
“It seems markets want to believe that the economy is slowing down, which it likely is, that recent rate hikes are to blame, and that the Fed is going to have to change its monetary policy stance soon,” Michael Hewson said. for CMC Markets.
While they had been hoping for months for signs of easing in the American labor market and an economic slowdown to foresee an imminent end to the cycles of rate hikes by the Federal Reserve (Fed), investors are now worried about the health of the world’s largest economy.
According to experts, the next few days’ data on jobs and inflation will be decisive in determining whether or not the US central bank (Fed) will raise its key rate by another 25 basis points at its next meeting in May.
But given the inflation that remains high, they do not expect a hasty turn from the Fed which would come down to lowering its rates, a pattern in which the markets are currently taking pleasure.
In the euro zone, a further rise in interest rates “will be appropriate” in May if the forecasts of the European Central Bank, which still expects high inflation, are realized despite the recent financial tensions, said its Thursday. chief economist.
The ECB, which is aiming for 2% forward inflation, has so far raised interest rates at an unprecedented speed, raising them by 350 basis points since July, in an attempt to contain the rise in prices which reached 10% in October in the euro zone, in the wake of the Russian invasion of Ukraine.
Global tourism leader TUI said it had seen strong demand for the Easter holiday with more than 500,000 customers and said it expected a “good summer 2023”. The stock soared 11.23% in London. In Paris, Accor climbed more than 5%.
A coalition of investors led by shareholder activism organization Follow This plans to table an advisory resolution at the TotalEnergies Group shareholders’ meeting to “align its targets for reducing” greenhouse gas emissions on the Paris agreement for 2030. The action gained 1.84% to 58.19 euros.
Oil prices were heading slightly lower on Thursday as investors scrutinized signs of weakness in the U.S. economy that could translate into sluggish demand.
By 6:50 a.m. EST, a barrel of Brent North Sea oil for June delivery was down 0.19% at $84.81.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in May, slipped 0.40% to 80.29 dollars.
Around 6:50 a.m. EST, the greenback was flat against the euro at $1.0903 to the euro.
