Original Source: www.challenges.fr
This article offers a glimpse into the European stock market’s prospects amid the muted trading conditions typical of Thanksgiving. It discusses recent American economic indicators, particularly inflation metrics impacting investor sentiment and market predictions. Furthermore, it highlights global market trends, including the performance of Asian markets, fluctuations in currency values, and the oil market dynamics in response to stock and geopolitical developments, creating a comprehensive picture of the current financial landscape.
As the dawn breaks over Europe, a hush of anticipation fills the air with European stock markets poised to open higher on Thursday, buoyed by the latest American indicators amidst the tranquil liquidity of Thanksgiving. Futures hint at a modest rise of 0.3% for the CAC 40 in Paris, while London’s FTSE and Frankfurt’s Dax show similar positive sentiments. The EuroStoxx 50 hints at a robust 0.67% increase, setting the stage for a calm trading atmosphere.
The recent inflation data released on Wednesday reflects a slight rebound in the PCE, which the Federal Reserve uses as a benchmark for price stability, climbing to 2.8% in October from 2.7% the previous month. Yet, analysts like Bastien Drut, head of strategy at CPR AM, remain unfazed, suggesting this inflation level poses no immediate threat to the Fed’s vigilance.
Investors keenly brace for a subdued trading environment over the next two days with American markets shuttered for Thanksgiving. Many traders are expected to remain absent, creating a quieter backdrop for European equities, which may still feel the shocks from political volatility—especially as the spread between French and German bond yields hits a twelve-year peak.
On Wall Street, the previous day saw a dip influenced by the technology sector paired with inflation uncertainties. The Dow Jones lost 136.31 points, a mere shadow of its former self, while the S&P 500 and NASDAQ Composite faced similar downturns, launching concerns about a potential slowdown in demand within the tech industry after dismal forecasts from tech giants like Dell and HP Inc.
In the Asian markets, Tokyo’s bourse rebounded after two days of decline, with the Nikkei lifting up by 0.56%. A wave of optimism swept through, leading to a 6.7% surge in Tokyo Electron’s shares. Conversely, Chinese markets wavered, with the Hang Seng index and others retreating due to fears of intensified trade tensions.
Amidst the ongoing developments, German yields remain stable as investors await November’s inflation report. The dollar gained strength, a testament to persistent inflation, with fluctuations in currencies like the yen and the Australian dollar signalling a dynamic trading landscape. Oil markets didn’t escape the tension, witnessing a spike in crude inventories, causing Brent prices to slip slightly as traders react to stockpile figures from the United States.
