European stock markets are expected to continue to fall ahead of manufacturing PMIs. The Eurostoxx 50 opens at 3,517.25 points (-1.25%), the CAC 40 at 6,125.10 points (-1.37%), the DAX 40 at 12,834.96 points (-0.97%), the FTSE 100 at 7,284.15 points (-1.05%), the SMI at 10,855.03 points (-0.27%), the AEX at 680.31 points (-1.01%), the SMI at 10,855.03 points (-0.27%), the AEX at 680.31 points (-1.05%) 45%), the BEL 20 at 3,585.84 points (-1.20%), the IBEX 35 at 7,886.10 points (-1.17%), the DJIA at 31.510.43 points (-0.88%), the Nasdaq at 11,816.20 points (-0.56%), the S&P 500 at 3,955.00 points (-0.78%) and the Nikkei 225 at 27.630,31 points (-1.64%).

As for exchange rates, the change from the close in New York indicates that EUR/USD opens at 1.0017 (-0.38%), EUR/JPY at 139.73 (+0.12%), and USD/JPY at 139.51 (+0.40%).

Investors will be watching the final figures for the French manufacturing sector PMI in August on Thursday. Preliminary data released by S&P Global on 23 August showed a contraction in activity, with an index of 49 compared to 49.5 in July. In a context of rising bond yields, Agence France Trésor will also auction 9 billion to 10 billion euros in equivalent Treasury bonds (OAT) maturing in May 2031, November 2032 and May 2038.

On the corporate side, Pernod Ricard and Euroapi publish their annual and half-year results respectively. On Wednesday evening, Eiffage confirmed its annual outlook, after publishing significantly improved results for the first half of the year.

European stock markets are expected to lose further ground at the opening on Thursday, following a fourth straight session of decline Wednesday on Wall Street. Investors are nervous before the publication of indicators on manufacturing activity in the eurozone and the United States and on the eve of the monthly report on American employment, which is still eagerly awaited. At 7:40am, the CAC 40 futures contract lost 53 points, or 0.9%, according to data from the IG Markets broker. The DAX contract fell 88 points, or 0.7%, and the FTSE 100 contract lost 41 points, or 0.6%.

Wall Street fell for the fourth consecutive session on Wednesday, ending August in the red amid concerns about rising interest rates and the economic outlook. The Dow Jones index lost 0.9% on Wednesday, like the expanded S&P 500 index. The Nasdaq index, rich in technology stocks, fell 0.6%. Over the whole month of August, the Dow Jones and the S&P 500 dropped 3.8%, while the Nasdaq fell 4.2%.

Major Asian stock exchanges were also down on Thursday. At the end of the session, the Nikkei index fell 1.6% in Tokyo and the Hang Seng on the Hong Kong Stock Exchange fell by 1.5%. However, the Shanghai Composite Index gained 0.1%. The Chinese manufacturing PMI index released Thursday by Caixin and S&P Global reported a contraction in activity in August as the country's economic recovery was hurt by Beijing's “zero Covid” policy and power outages due to an extreme heat wave in China. Caixin's manufacturing PMI fell to 49.5 in August from 50.4 in July. Below 50, the index reflects a contraction in activity.

The two-year US Treasury yield registered its biggest monthly increase since March in August, but ended Wednesday's session lower as the market believes the Fed will raise rates to curb inflation. The yield on the two-year bond, which is very sensitive to changes in monetary policy, hovered around 3.5% on Thursday morning, which had not happened to it for 15 years. On the market, the probability of a further increase of 75 basis points in the Federal Reserve's key rates following the Monetary Policy Committee on 20 and 21 September is now 68.5%. The probability of a similar rise in December, which would bring rates into a range of 3.75% to 4%, is 61.5%. At the same time, economists at the Atlanta Fed warned that it could take up to two years for rate hikes to have a real impact on inflation.

The euro fell against the dollar on Thursday morning and Capital Economics believes that the single currency should still lose ground against the greenback despite its “collapse against the dollar this year and last year.” According to the research company, the euro is expected to fall to 90 cents by mid-2023 and thus fall to its lowest level since 2002. According to Silicon Valley Bank, the dollar should remain strong as central banks in Europe and Japan struggle to raise interest rates, while the yen has fallen to its lowest level against the dollar in 20 years. The fact that the Fed and the Bank of Japan tightened their tone on Friday pushed the dollar/yen pair towards 140 yen, a highly watched level, CBA says.

Oil prices fell again on Thursday. They fell in August, experiencing their third consecutive month of decline, which had not happened in more than two years. In addition, OPEC+, which brings together the Organization of Petroleum Exporting Countries (OPEC) and ten allied countries led by Russia, will meet on Monday. At 7:25 a.m., the November North Sea Brent contract lost 42 cents to $95.22 per barrel, while the October contract for New York-listed light crude (WTI) fell 46 cents to $89.09 per barrel.