Original Source: www.usinenouvelle.com
This article provides a snapshot of the European market’s early performance, highlighting the anticipations set against the backdrop of recent economic indicators, such as the PCE inflation rate. The calm expected in trading activity during the Thanksgiving holiday emphasizes the importance of liquidity in markets, while geopolitical factors complicate the landscape for French assets. Additionally, the article explores movements in global stock exchanges, currency fluctuations, and commodities, setting the stage for investor sentiment and strategic decision-making in the face of fluctuating inflation and economic stability.
As the sun graces Europe with its early light, markets appear set to rise quietly, promising a tranquil opening amid the euphoria of small gains. Futures hint at a gentle upward glide of 0.3% for the CAC 40 in Paris, a modest 0.07% for the FTSE in London, and a more noticeable 0.67% for the EuroStoxx 50, reflecting a collective optimism. Recent indicators, particularly the PCE inflation figures released, reveal a slight uptick in inflation to 2.8%, nudging upward from 2.7% in September—yet, experts suggest this won’t pivot the course for the Federal Reserve, as core inflation remains comfortably distanced from troublesome thresholds.
On the horizon, the trading atmosphere is set to be calm over the next couple of days, as American markets pause for Thanksgiving—a time for reflection and gratitude, leaving most traders away from their desks. Within this backdrop, French assets may encounter turbulence, particularly as tensions mar the political landscape, causing the yield gap between France and Germany to stretch to a twelve-year high.
Across the Atlantic, Wall Street experienced a dip on the eve of its holiday closure, driven down by technology firms amidst inflation anxieties. The Dow Jones slipped 136.31 points, tagging a total of 44,723.23, with the S&P 500 and Nasdaq also marking losses. Particularly vulnerable were shares in Dell and HP, plunging 12% and nearly 6% respectively, as projections dampened hopes for a recovery in PC demand during this tech expansion.
In Asia, Tokyo’s stock market found fresh momentum, rebounding from recent declines as investors seized the opportunity for favourable entries. The Nikkei rose by 0.56%, while broader gains were reflected in the Topix’s uplift of 0.82%. On the other hand, apprehension hung over Chinese markets due to ongoing trade tensions, with indices like Hang Seng and SSE Composite closing in the red.
Meanwhile, stability lingers in German bond yields ahead of upcoming inflation data, with German ten-year bonds holding steady at 2.165%. American bond markets, however, are silent, observing the Thanksgiving break.
In the currency world, the dollar gains strength, confronting persistent inflation indicators from the US. The yen dipped slightly against the dollar, weighed down by economic sentiment, while the euro found itself weaker at 1.0548 dollars. In precious oil markets, inventories climbing by 3.3 million barrels last week cast a pall over prices, sending Brent and WTI into slight retreats, as traders absorb the news with caution.
