This Friday, despite monetary policy concerns, equity markets are expected to decline in Europe. The Eurostoxx 50 opens at 4,250.14 points (+0.97%), the CAC 40 at 7,188.36 points (+0.96%), the DAX 40 at 15,523.42 points (+0.72%), the FTSE 100 at 7,911.15 points (+0.33%), the SMI at 11,217.73 points (-0,52%), the AEX at 757.05 points (+0.33%), the SMI at 11,217.73 points (-0,52%), the AEX at 757.05 points (+0.33%) 6%), the BEL 20 at 3,922.01 points (+0.52%), the IBEX 35 at 9,243.50 points (+0.18%), the DJIA at 33,699.88 points (-0.73%), the Nasdaq at 11,789.58 points (-1.02%), the S&P 500 at 4,081.50 points (-0.88%), the Nikkei 225 at 27,670.98 points (+0.31%).

In terms of exchange rates, the change from the close mentions that in New York, EUR/USD is at 1.0727 (-0.11%), EUR/JPY at 141.11 (-0.23%), and USD/JPY at 131.53 (-0.04%).

Despite disruptions linked to Covid-19 in China that continued to curb sales in its “luxury” division, the world leader in cosmetics L'Oréal published sales slightly higher than analysts' expectations for the fourth quarter on Thursday evening. The results, broadly in line with analysts' expectations for 2022, were published by the stock exchange operator Euronext. He noted his objective of synergies linked to the integration of Borsa Italiana. Aperam also reports its fourth-quarter results on Friday.
In France, no economic indicators are due to be published on Friday.

In Europe, stock markets are expected to open lower on Friday. Investors are concerned about rising interest rates and slowing growth.

According to data from the IG broker, the CAC 40 futures contract lost 29.5 points, or 0.4% at 7:40am. The FTSE 100 contract fell 29.5 points, or 0.4%, and the DAX 40 contract fell 116 points, or 0.8%.

On Thursday, the New York Stock Exchange lost ground. It extended its decline from the previous day despite several well-received corporate publications. The Dow Jones Index (DJIA) lost 0.7% to 33,699.88 points, further hampered by uncertainties about the evolution of monetary policy. The broader S&P 500 index finally fell 0.9%, to 4,081.50 points, after opening in the green, while the Nasdaq Composite closed down 1%, at 11,789.58 points.

According to Gene Goldman, chief investment officer at Cetera Financial Group, the fact that American central bankers, including Federal Reserve (Fed) Chairman Jerome Powell, largely confirmed their message this week avoided a downturn in stocks. Gene Goldman announced that “the Fed did not surprise anyone, it stuck to its message. [Jerome] Powell didn't change anything he said at his press conference [last week].” He is referring to the Fed Chairman's question-and-answer session at the Economic Club in Washington on Tuesday.

Major Asian indices moved in a contrasting manner on Friday. At the end of the session, the Hang Seng index on the Hong Kong Stock Exchange lost 1.8% and the Nikkei index ended up 0.3% in Tokyo. For its part, the Shanghai Composite Index fell by 0.4%.

After a poor 30-year bond auction pushed the 2-year bond rate to its highest level since the end of November and the 10-year bond to its highest level in a month, US Treasury bond yields changed little this morning. The yield curve narrowly avoided ending the New York session with its most negative value since October 1981. It is measured by the gap, or spread, between 2-year and 10-year Treasury bond rates. Last night, this spread stood at -82.5 basis points compared to the recent low of -84.9 basis points reached on December 7. According to Oanda, the extreme reversal of the yield curve “suggests that a general slowdown is brewing.” The rate for the 2-year US Treasury bond was unchanged at 4.490% and that for the 10-year bond was almost stable at 3.668%.

The greenback is stable against the Japanese currency and the euro is losing ground against the dollar and the yen this morning. Steve Barrow, head of strategy for the G10 at Standard Bank, said the Fed's determination to beat inflation won't provide much fuel to the dollar this year. For him, “as long as the market is confident that the Fed's tightening cycle is over or close to being completed, and continues to consider cutting rates next year, the dollar should fall provided that this monetary policy position does not hurt asset prices such as stocks.”

Oil futures are retreating this morning, while fears about an economic slowdown in the United States are clouding the demand outlook. According to Fawad Razaqzada, an analyst at City Index et FOREX.com , oil prices have fallen after their “impressive” rise in recent days. The March contract for light sweet crude (WTI) listed on Nymex lost 30 cents at $77.76 per barrel, while the April contract on North Sea Brent lost 17 cents to $84.33 per barrel around 7:20 a.m.