Before American employment, European equity markets are expected to fall slightly. The Eurostoxx 50 opens at 3,433.45 points (-0.41%), the CAC 40 at 5,936.42 points (-0.82%), the DAX 40 at 12,470.78 points (-0.37%), the FTSE 100 at 6,997.27 points (-0.78%), the SMI at 10,391.13 points (-0.83%), the AEX at 661.38 points (-0.78%), the SMI at 10,391.13 points (-0.83%), the AEX at 661.38 points (-0.78%) 46%), the BEL 20 at 3,434.81 points (-0.34%), the IBEX 35 at 7,511,10 points (-0.91%), the DJIA at 29,926.94 points (-1,15%), the Nasdaq at 11,073,31 points (-0.68%), the S&P 500 at 3,744.52 points (-1.02%) and the Nikkei 225 at 27,100.85 points (-0, 77%).

With regard to exchange rates, the change since the close mentions that in New York, EUR/USD is at 0.9809 (+0.16%), EUR/JPY at 142.19 (+0.04%) and USD/JPY at 144.96 (-0.13%).

In a press release published on Thursday evening, October 6, 2022, the Vallourec oil industry announced that the SVPglobal fund had sold its stake in the group. This sale led to the end of the agreement concluded with Vallourec and the resignation of the directors appointed by SVPGlobal

On Thursday, video game publisher Ubisoft announced that its creative director, Igor Manceau, would leave the group at the end of November for “personal reasons.” For its part, the automotive supplier Plastic Omnium indicated that it has completed the acquisition of the Lighting Systems division of the Indian group Varroc (VLS) for an enterprise value of 520 million euros. Valneva is participating in an investor event on Friday, October 7, 2022.

At the start of the week, European equity markets may run out of momentum on Friday, October 07, 2022. Investors continue to face high volatility while waiting for the report on non-agricultural employment in the United States. According to data from the IG Markets broker, the CAC 40 futures contract fell by 17.7 points, or 0.3%. The FTSE 100 contract lost 11 points, or 0.2%, and the DAX 40 contract lost 38.6 points, or 0.3%.

While several members of the Federal Reserve (Fed) insisted on the need to continue fighting inflation despite the expected slowdown in growth, the New York Stock Exchange ended lower on Thursday, October 6, 2022. At a conference, Fed Governor Lisa Cook indicated that the rise in prices is proving more persistent than expected and requires raising interest rates to levels that will slow economic activity.

The main indexes lost ground on Friday, October 7, 2022 in Asia. Due to National Day, the stock exchanges in mainland China are closed. The Nikkei index dropped 0.8% and the Hang Seng Index on the Hong Kong Stock Exchange fell by 1.1%. After earlier being supported by statements by Fed officials who repeated that higher borrowing costs were necessary to curb inflation, US Treasury yields stabilized. The 2-year bond rate was almost stable at 4.258% and the 10-year US Treasury rate was unchanged at 3.822% around 7:20 a.m. According to Stifel Nicolaus, “The stubbornly high level of prices is forcing monetary policy makers to stay the course with rate hikes.”

The Fed announced in September that the 75 basis point increase was the third of this magnitude. The US central bank's key interest rates increased by 300 basis points.

The greenback gave up some ground against the Japanese currency, while the euro appreciated against the dollar on Friday, October 7, 2022, in the morning, but was stable against the yen. According to ANZ, however, the Fed's restrictive tone should continue to benefit the dollar. The bank notes that “Fed officials generally maintained a restrictive discourse this week and with interest rates rising in the United States, there are many factors supporting the dollar.”

Oil futures are down slightly. The December contract on Brent lost 25 cents to $94.17 per barrel, while the November contract on the WTI listed in New York lost 22 cents to $88.23 per barrel around 7:20 a.m.

ANZ believes that the decision taken this week by OPEP+ to reduce production could be a turning point because it is expected to amplify market tensions. According to him, the oil market is also facing an unprecedented series of problems, including European sanctions against oil from Russia, which will come into force in December.