PARIS (Reuters) – The main European stock markets are expected to rise on Friday after the results and forecasts exceed expectations from Apple and Amazon while the contraction of the American economy for a second consecutive quarter continues to fuel the assumption that the Federal Reserve (Fed) is less aggressive for its next rate hikes.
Futures contracts give an increase of 0.77% for the Paris CAC 40, 0.52% for the Dax Frankfurt, 0.32% for the FTSE London and 0.66% for the EuroStoxx 50.
Apple and Amazon gained 3% and 12% respectively in non-session trading in response to strong quarterly results and above-expected forecasts, both forecasting demand to remain strong despite inflation.
These announcements should primarily benefit the Nasdaq, indicated for the moment up 1.35% by American “futures”, while the Standard & Poor’s-500 could take 0.66% and the Dow Jones open the balance. .
In Europe, the morning is again animated by the publications of companies with among others those of BNP Paribas, Renault, Herms and AstraZeneca.
The session will also be rich in indicators, mainly with the first figures for inflation in July and growth in the second quarter in the euro zone, at 09:00 GMT.
In France, economic growth rebounded more markedly than expected over the April-June period, 0.5% according to the first results published by INSEE.
In the United States, gross domestic product contracted by 0.9% over the April-June period, after a 1.6% drop in the previous quarter, leading economists to wonder whether the world’s largest economy is already in recession or about to be.
For some observers, this new decline in GDP is rather good news because it could lead the Fed to be less restrictive in tightening its monetary policy.
AT WALL STREET
The New York Stock Exchange ended up on Thursday for a second consecutive session after the announcement of second-quarter GDP: the Dow Jones index gained 1.03% to 32,529.63 points, the S&P-500 took 1.21 % 4,072.43 points and the Nasdaq Composite advanced 1.08% 12,162.59 points.
With earnings season in full swing, growth forecasts have been revised upwards as more S&P-500 companies reported quarterly results that beat expectations.
Among them, the car manufacturer Ford whose title jumped 6.1% after the publication of a quarterly net profit better than expected.
Meta Platforms fell 5.2% after posting the first decline in quarterly revenue on Wednesday.
In China, the Shanghai SSE Composite fell 0.76% and the CSI 300 1.12% after Beijing refrained from recalling mention of its 2022 growth target after a Communist Party meeting, focusing instead on growth. obtaining the best possible results for the economy.
“The Politburo meeting reinforces our view that stimulus will remain relatively restrained this year and that the economy will continue to operate well below potential in coming quarters,” said Julian Evans-Pritchard, an economist at Capital Economics.
After reaching a seven-week peak on Thursday, the Nikkei ended in equilibrium (-0.05%) on the Tokyo Stock Exchange.
On the earnings side, automaker Nissan dropped 4.85% after posting a 14% drop in quarterly operating profit due to chip shortages, anti-COVID restrictions in China and high commodity prices.
On the bond market, the yields on ten-year Treasury bills fell slightly to 2.6577% after falling Thursday in session to the lowest in more than a month, 2.649%, in response to the unexpected drop in US GDP in the second quarter.
Its German equivalent advances on its side 0.815% in the first exchanges.
The dollar fell 0.5% against a basket of other benchmark currencies and the single European currency rose to 1.0227 dollars.
Oil prices move in a dispersed order between concerns about supply and those about a possible recession.
Brent lost 0.22% to 106.9 dollars a barrel and American light crude (West Texas Intermediate, WTI) took 0.34% to 96.75 dollars.
(Written by Laetitia Volga, spoken by Kate Entringer)
by Laetitia Volga