Stock market: what is moving in the markets before the opening on Friday

MARKET REVIEWS. Global stock markets were up on Friday, investors being reassured by the positive outcome on US debt and impatiently awaiting data on US employment to help them anticipate the next directions of central banks.

Stock indices
European markets were lower on Friday morning, hours after a robust session in Asia and on Wall Street.

London, Frankfurt and Paris yielded between 0.3% and 0.4% at the start of the session in Europe.

In New York, before the opening of the markets, the Dow Jones average of industrial values slipped by 0.2% and the broader S&P 500 index by 0.1%.

In Asia, the Nikkei 225 soared 2.0% in Tokyo. The Shanghai Stock Exchange rose 0.6% and the Hang Seng 0.5% in Hong Kong. Sydney added 0.3% and Seoul a solid 1.2%.

On the New York Commodities Exchange, the price of oil rose 2 US cents to US$71.31 a barrel.

The context
Upcoming central bank meetings are in the sights of investors. That of the American Federal Reserve (Fed) will be held on June 13 and 14, followed by those of the European Central Bank (ECB) on Thursday and the Bank of Japan on Friday.

In this context, the weekly jobless claims in the United States have been carefully scrutinized by analysts. In detail, registrations climbed in early June and are at their highest since October 2021, a sign that layoffs have multiplied.

“We need the US job market to lose some steam so the Fed can stop raising rates, otherwise major central banks will keep raising theirs,” said Ipek Ozkardeskaya, analyst at Swissquote Bank. .

“American companies laid off more workers in the first five months of this year than in all of last year,” the analyst added.

After ten consecutive hikes, analysts increasingly expect the powerful US monetary institution to take a break from raising its key interest rates in June, before another hike in July.

On the eurozone side, “the ECB may have to wait until September or even later before it has solid evidence that underlying inflation is slowing enough to put a pause or even stop the cycle of rate hike.”

Elsewhere in the economic news, inflation in China was near zero in May as ex-factory prices continued to plunge, signs of sluggish demand and a complicated environment for businesses, official figures showed on Friday.

The consumer price index (CPI), the main gauge of inflation in China, rose in May by 0.2% year on year, against 0.1% a month earlier, according to the National Bureau of Statistics (BNS), exactly what analysts interviewed by Bloomberg expected.

The bond is a little tense
Bond debt rates twitched slightly on Friday. The interest on the French 10-year loan was at 2.97%, against 2.94% the day before at the close. The interest of the German 10-year loan was displayed at 2.42%, against 2.40% the day before.

Croda falls in London
In London, the chemical group Croda fell by 12.52%, after announcing on Friday that a significant drop in sales at the start of the year would weigh on its annual result.

Commodities and Currencies
The price of a barrel of Brent from the North Sea for delivery in August fell 0.68% to US$75.44. Its American equivalent, the West Texas Intermediate (WTI), maturing in July, lost 0.71% to US$70.78.

The euro dropped 0.10% against the dollar, at US$1.0771.

Bitcoin fell 0.64% to $26,472.

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