Original Source: www.zonebourse.com
The article discusses the preliminary trends in European and global stock markets as they approach a historically quiet period surrounding the Thanksgiving holiday. It identifies key economic indicators, such as inflation rates in the US, their implications for European markets, particularly in light of potential volatility owing to political instability in France. Moreover, it touches upon significant declines on Wall Street and mixed reactions in Asian markets, alongside insights into currency fluctuations and oil inventory impacts, thereby offering an overarching view of international financial sentiments and trends.
On the eve of Thanksgiving, European markets are poised to awaken in the green, with a gentle yet notable rise expected at the opening bell. Futures indicate a 0.3% uptick for Paris’s CAC 40, as traders sift through the latest American economic indicators amidst a backdrop of thinner liquidity. The inflation data released on Wednesday revealed a slight increase in the core PCE inflation rate to 2.8%, hinting at a steady but cautious approach from the Federal Reserve as they navigate the economic landscape.
As the holiday sees many American markets shut on Thursday, the sessions ahead are anticipated to be tranquil, yet surveillance on French assets remains crucial, with rising political tensions influencing market volatility. Wednesday’s observations highlighted an unprecedented gap in bond yields between France and Germany, signalling a new chapter in their economic narrative.
Across the Atlantic, Wall Street reflected a more somber mood, declining due to uncertainties in the tech sector and inflation perspectives, as key indices fell, echoing concerns about a potential downturn in PC demand amid emerging AI dynamics. Meanwhile, Asian markets responded with mixed sentiments; Tokyo saw a slight recovery, buoyed by investor optimism, while Chinese shares suffered under the shadow of trade tensions.
In the bond market, German yields held steady ahead of impending inflation data, contrasting sharply with the American yield landscape, now quieter for Thanksgiving. Currency exchanges highlighted a strengthening dollar; in Asia, the yen weakened slightly against it, reflecting ongoing inflation discussions that ripple across the global market. Lastly, crude oil inventories rose unexpectedly, exerting downward pressure on prices, and highlighting the continued interplay between supply and demand in the energy sector.
