Equity markets should try to recover at the opening. The Eurostoxx 50 opens at 3,427.91 points (-2.96%), the CAC 40 at 5,886.24 points (-2.39%), the DAX 40 at 13,038.49 points (-3.31%), the FTSE 100 at 7,044.98 points (-3.14%), the SMI at 10,475.37 points (-2.86%), the AEX at 638.34 points (-3.14%), the SMI at 10,475.37 points (-2.86%), the AEX at 638.34 points (-3.14%), the SMI at 10,475.37 points (-2.86%), the AEX at 638.34 points (-3.14%), the SMI at 10,475.37 points (-2.86%), the AEX at 638.34 points (-3.14%) 3.75%), the BEL 20 at 3,650.77 points (-2.81%), the IBEX 35 at 8,078.10 points (-1.18%) and the Nikkei 225 at 26,045,21 points (-1.46%).
On the exchange side, the change compared to the close in New York indicates that EUR/USD was 1.0523 (-0.26%), EUR/JPY at 140.91 (+1.06%) and USD/JPY at 133.92 (+1.32%).
European equity markets are expected to open higher on Friday, but trading could remain volatile as investors increasingly fear that drastic interest rate hikes could trigger a global recession. At 7:40am, the CAC 40 futures contract gained 54.9 points, or 0.9%, according to data from the IG Markets broker. The DAX 40 contract rose 121 points, or 0.9%, and the FTSE 100 contract rose by 53 points, or 0.8%.
Investors will monitor inflation figures in the eurozone as well as the meeting of European Finance Ministers (Ecofin) in Luxembourg on Friday. They are also waiting for the publication of industrial production in May in the United States and the intervention of the Chairman of the US Federal Reserve (Fed), Jerome Powell, at a central bank conference on the role of the dollar abroad. The New York Stock Exchange closed sharply on Thursday, the day after a strong rebound prompted by the Federal Reserve's (Fed) determination to fight inflation. The Dow Jones Index fell below 30,000 for the first time since January 2021.
In Asia, the main indices moved in a mixed order on Friday, after Wall Street pulled back the day before. The Bank of Japan kept interest rates very low on Friday, confirming that it would not join the Fed and other major global central banks in tightening monetary policy. The Japanese central bank kept its short-term policy rate at -0.1% and its target for the 10-year Japanese government bond yield at around zero. After this decision, the Nikkei index on the Tokyo Stock Exchange lost 1.5% at the end of the session. In China, the Shanghai Composite Index lost 0.02% and the Hang Seng, the flagship index of the Hong Kong Stock Exchange, gained 0.8%.
U.S. Treasury bond yields recovered on Friday morning, after two sessions of strong declines following the Federal Reserve's monetary policy decision. Around 7:30am, the 10-year Treasury rate gained more than 3 basis points, at 3.238%.
The euro lost ground against the dollar on Friday morning but rose sharply against the yen, like the greenback. The yen weakened significantly after the Bank of Japan decided to leave interest rates unchanged and to continue its policy of controlling the yield curve. The Bank of Japan's maintenance of the status quo is understandable as the country is not yet experiencing a slide in inflation and its economy remains fragile, Maybank says. However, the central bank could tighten its rhetoric and hint at a revision of its policy if inflationary pressures become more persistent, adds the financial intermediary.
Oil futures are falling in the wake of Asian markets, hampered by the pessimism triggered by the downturn on Wall Street and continued fears about the global economy. On Thursday, oil prices rose, closing higher after the announcement of new US economic sanctions against Iran. At 7:30am, the August North Sea Brent contract lost 76 cents to $119.05 a barrel. The July contract for light sweet crude (WTI) traded on Nymex sold 77 cents at $116.82 per barrel.