Europe on the rise, Wall Street expects the u.s. GDP


© Reuters. EUROPEAN STOCK MARKETS RISE IN MID-SESSION

by Laetitia Volga

PARIS (Reuters) – The european markets are upbeat on Friday at mid-session in a climate moderated by the publications of results of companies and the trend on Wall Street is expected to evolve with the publication, one hour before the opening, a first estimate of u.s. growth for the first three months of the year.

In Paris, the CAC 40 won 0.17 percent to 5.462,63 to 11: 20 am GMT. In Frankfurt, the Dax takes 0,68% and in London, the FTSE gaining 0,68%.

Index pan-european FTSEurofirst 300 was virtually stable (+0,02%), the EuroStoxx 50 for the euro area in advance of 0.22% and the Stoxx 600 is at equilibrium.

The index futures new york indicate an opening of Wall Street in a haphazard manner prior to publication at 12: 30 GMT the first estimate of gross domestic product (GDP) in the u.s. in the first quarter.

In the meantime, the dollar continues its rally and is gaining 0.31 per cent opposite a basket of reference currencies, while the euro fell 0.18 per cent favouring the rise in european equities. The yield on government bonds us 10-year is back around of 2.97%.

The dollar also benefits from a climate favourable geopolitical with the historic meeting on Friday between the leaders of the two Koreas, committed to the path of reconciliation, promising the “denuclearization” full of the Korean peninsula and the establishment of a peace that is “permanent” and “solid” between their countries still technically at war.

For its part, the pound sterling was adversely affected by the unexpected slowdown of the growth of the british economy in the first quarter, which prompts one to ask, if the Bank of England will raise rates at the monetary policy meeting on may 10.

The british currency transfers of around 1% against the dollar and against the euro and the yield on government bonds british two-year-old, sensitive to expectations of changes in the rate, loses about seven basis points to 0,822%.

For its part, the Bank of Japan (BoJ) left its monetary policy unchanged Friday, while stopping to set a timetable to reach its goal of 2% inflation.

The european central Bank has also maintained Thursday that the status quo on its ultra-accommodative monetary policy and its president has downplayed concerns about slowing growth in the euro zone, leaving the way open for a stop to its policy of purchase of assets at the end of 2018.

ITS IN HEAD OF THE STOXX

The high technology sector (+1.01 per cent) took advantage of the strong results posted by the giants in the sector in the United States. After Facebook (NASDAQ:FB) (+9,06%), the results of Amazon (NASDAQ:AMZN), Intel (NASDAQ:INTC) and Microsoft (NASDAQ:MSFT) came out better than expected, resulting in a net increase of the shares of the three groups in the exchange before the Exchange.

The increase 5.11% of CapGemini also supports the sector techno european, the it services company has announced a growth of its turnover to be higher than expected in the first quarter, leading several analysts to revise upwards their forecast for 2018.

The satellite operator SES takes for 10.54%, its largest increase in a session in 10 years, after reporting a quarterly profit better than expected, the dynamism of its division of Network compensating for the weakness of the division Video.

Conversely, the Swedish manufacturer of kitchen appliances Electrolux is accusing the largest decline on the Stoxx 600 (-12,19%) after it announced an unexpected downturn in its operating profit quarterly and warned that the rising cost of raw materials would weigh more than expected.

Sanofi (PA:SASY) decreased from 1.82% in response to quarterly results penalized by the exchange rate and activity, “diabetes and cardiovascular”, the group has further suggested that the second quarter was also difficult.

Heavy foreign exchange effects and several reverse trade have weighed on the quarterly sales of Renault (PA:RENA), who signed the largest decline of the CAC 40: – 3.2 per cent.

(Edited by)

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