(Paris) European stock markets were in the red on Friday at the opening, failing to rebound after a session on Thursday signing their worst performance since mid-March and cautious before a new indicator on US employment decisive for the direction of policy central banks.
Around 3:55 a.m. (Eastern time), Paris was down 0.17%, after opening in the green at +0.23%. Frankfurt (-0.16%) and Milan (-0.15%) also lost ground slightly, while London showed a more marked trend (-0.58%).
The trend was the same on the Asian markets: Tokyo closed sharply down -1.17% and Shanghai down a small 0.28%. Hong Kong lost 0.74% in the latest trade.
“This has been a terrible week for European markets, on course for their worst weekly performance since March, the DAX fell to three-month lows, while the FTSE100 slipped just a stone’s throw from its March lows. says Michael Hewson, analyst at CMC Markets.
On Thursday, European stock markets had their worst session since March 15, ending a fourth session in the red. In question ? The sharp rise in interest rates on both sides of the Atlantic, with investors “anticipating that the Fed will not stop raising its key rates” after jobs data that was “stronger” than expected, said Ipek Ozkardeskaya, an analyst at Swissquote Bank.
Because the strength of the labor market does not facilitate the fight of the American central bank against inflation, which certainly slowed down in 2023 but still remains well above the target of 2%.
“Whatever happens today, a 25 basis point rate hike this month looks like a given, so the question is how many more hikes will follow,” said Michael Hewson, of CMC Markets.
Around 7:20 a.m. on Friday on the bond market, interest rates eased slightly after their surge the day before: the British 10-year rate was at 4.63%, down very slightly from a Thursday high of 4 65%, more than reached since 2008. The French 10-year rate eased to 3.18%, after having come close to 3.20% on Thursday.
All eyes will be on the monthly U.S. jobs report on Friday, as investors hunt for any clues that could influence Fed policy. “There is also a concern that a good report will encourage the Federal Reserve to think that the economy is more resilient than it actually is and to raise rates more than necessary,” the analyst said.
“On the other hand, we could see a slowdown in wage growth. If so, investors might still have reason to see the glass half full and bet that the US economy could achieve the soft landing it hopes for,” Ipek Ozkardeskaya says.
Thyssenkrupp bets on hydrogen
German industrial conglomerate Thyssenkrupp listed its hydrogen plant subsidiary, Thyssenkrupp Nucera, on the Frankfurt Stock Exchange on Friday, illustrating the growth ambitions of this alternative technology to fossil fuels.
Thyssenkrupp Nucera shares posted 20.20 euros, above the IPO price set at 20 euros, during its first quotation at 3:15 a.m. (Eastern time), valuing the listed entity at 2, 5 billion euros.
On the side of oil and the euro
Oil prices advanced on Friday, further boosted by good news from US demand for refined products.
Around 3:35 a.m. (Eastern time), a barrel of Brent from the North Sea, for delivery in August, took 0.69% to 77.05 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, gained 0.52% to 72.17 dollars.
The euro was stable (-0.02%) at $1.0886.
Bitcoin was losing ground, losing 0.76% to $30,086.