Wall Street is anticipated to open positively, with New York index futures indicating minor gains in the Dow, S&P 500, and Nasdaq. In Europe, stock markets are mixed amid weaker corporate earnings and economic data. Investors are cautious ahead of upcoming U.S. elections and critical indicators like the durable goods report. Notably, automotive stocks are struggling, especially after disappointing earnings from major players. Oil prices are receiving a slight boost due to ongoing geopolitical tensions.
PARIS (Reuters) – On Friday, Wall Street is anticipated to begin on a positive note, while European stock markets are showing mixed performance during midday trading as investors evaluate corporate earnings in light of upcoming US elections and new economic data. Futures for New York indices indicate a projected rise, with the Dow Jones increasing by 0.24%, the S&P 500 up by 0.26%, and the Nasdaq rising by 0.28%.
In Paris, the CAC 40 index is slightly lower, down 0.05% at 7,499.5 points around 10:40 GMT. Meanwhile, Germany’s DAX has gained 0.14%, while the UK’s FTSE has dipped by 0.02%.
The pan-European FTSEurofirst 300 index shows a slight decline of 0.02%, the EuroStoxx 50 increases by 0.1%, and the Stoxx 600 experiences a minor rise of 0.02%.
As American investors zero in on uncertainties surrounding the November 5 elections, they are also awaiting crucial economic indicators set to be released during this session and in the weeks ahead.
Market speculation grows regarding the potential consequences of economic policies advocated by the main candidates, especially with an increasing likelihood of a Donald Trump victory. Analysts emphasize that while it’s essential to consider party ideologies, the personal dynamics of the candidates add another layer of uncertainty. Patrick Nielsen, Deputy Managing Director of MAPFRE AM, notes, “The pivotal question lies in the extent of action permissible after the elections. A party that secures control over both the House and the Senate may pave the way for more assertive policies.”
This trading session is also marked by the upcoming release of the US durable goods report at 12:30 GMT, which will provide insights into consumer strength for September and may spark discussions about the Federal Reserve’s approach to interest rates in the medium term.
As the Fed’s decision date on November 7 approaches, investors are keenly awaiting the monthly employment report set to be published on November 1.
In Europe, market sentiment is influenced by disappointing corporate results overall, with the Eurozone PMIs unveiled on Thursday pointing to a lackluster economic performance, raising questions regarding potential rate cuts by the European Central Bank.
WALL STREET STOCKS TO WATCH
Capri Holdings is experiencing a significant plunge of 46% in pre-market trading following the Federal Trade Commission’s decision to block its $8.5 billion merger with Tapestry over antitrust concerns.
Meanwhile, Morgan Stanley announced that its CEO, Ted Pick, will assume the role of chairman starting January 1, 2025, succeeding James Gorman who is leaving to lead the board at Walt Disney.
After a robust performance on Thursday, where shares increased by 21.9%, Tesla is projected to decline by 2.2% in pre-market trading.
EUROPEAN STOCKS TO WATCH
In Europe, automotive stocks are facing tough times, dropping by 0.9% as Mercedes-Benz’s disappointing third-quarter earnings led to a 1.25% decrease in its stock. Additionally, French supplier Valeo has slashed its sales target, causing its shares to fall by 10.41%.
Alten’s stock also saw a drop of 7.91% after the engineering firm, heavily tied to the automotive sector, reduced its annual forecasts due to declining business activity.
Moreover, spirits maker Rémy Cointreau’s shares fell by 0.59% after it lowered its targets for the 2024-2025 fiscal year, following a striking 16.1% organic decline in second-quarter sales.
In contrast, NatWest reported a 25% increase in third-quarter profits, boosting its shares by 3.2%.
BOND MARKETS
Bond yields remained steady on Friday as investors await the US economic data, with minimal movements noted in both the US and Germany. The yield on the ten-year Treasury dropped by 0.2 basis points to 4.2%, while the two-year yield held stable at 4.066%. In Germany, the ten-year yield strengthened by 2.5 basis points to 2.28%, and the two-year yield rose by 3.9 basis points to 2.136%.
CURRENCY MARKETS
The foreign exchange market remained stable as traders awaited the durable goods data from the US. The dollar dipped by 0.01% against