Before inflation in the eurozone, European equity markets should be reluctant to open. The Eurostoxx 50 opens at 4,215.75 points (-0,53%), the CAC 40 at 7,234.25 points (-0.46%), the DAX 40 at 15,305.02 points (-0.39%), the FTSE 100 at 7,914.93 points (+0.49%), the SMI at 11,056,08 points (-0.38%), the AEX at 749.38 points (-0,49%), the SMI at 11,056,08 points (-0.38%), the AEX at 749.38 points (-0,49%), the SMI at 11,056,08 points (-0.38%), the AEX at 749.38 points (-0,49%), the SMI at 11,056,08 points (-0.38%), the AEX at 749.38 points (-0,49%), the SMI at 0.47%), the BEL 20 at 3,879.87 points (-0.57%), the IBEX 35 at 9,322.90 points (-0.76%), the DJIA at 32,661.84 points (+0.02%), the Nasdaq at 11,379.48 points (-0.66%), the S&P 500 at 3,951.39 points (-0.47%), and the Nikkei 225 at 27,498 8.7 points (-0.06%).

On exchange rates, the change from the close mentions that in New York, EUR/USD is at 1.0641 (-0.28%), EUR/JPY at 145.38 (+0.05%), and USD/JPY at 136.63 (+0.31%).

Hampered by the prospect of another interest rate hike, European equity markets could open hesitantly on Thursday. The DAX 40 contract lost 7.5 points, or 0.1%, and the FTSE 100 contract gained 15 points, or 0.2%. According to data from the IG broker, the CAC 40 futures contract gave up 3.1 points around 7:30am.

Last month, the ISM manufacturing index highlighted another contraction in activity, but it proved to be above expectations and fuelled fears that the Fed would be more severe in beating inflation. For his part, Minneapolis Fed Chairman Neel Kashkari said Wednesday that he did not rule out a 50-basis-point rate hike in March and raised his rate forecast for the end of the year.

Major Asian stock exchanges fell on Thursday. The Hang Seng on the Hong Kong Stock Exchange lost 0.9% at the end of the session and the Shanghai Composite Index lost 0.03%. The Nikkei index closed down 0.1% in Tokyo.

Amid concerns that China's post-COVID recovery will complicate central banks' fight against inflation and lead to even steeper rate hikes, US government bond yields are gaining ground today. The probability that the Fed will raise its key interest rate by 50 basis points on March 22, to a range of 5% to 5.25%, is estimated at 30.6% according to CME Group's FedWatch tool. The probability that the Fed will raise this rate to 5.5%-5.75% by September is also estimated at 39% depending on the evolution of 30-day federal funds futures. The 10-year US Treasury rate gained 3 basis points to 4.027% around 7:20am and that of the 2-year bond gained nearly 3 basis points, at 4.921%.

The dollar strengthened against the euro and the yen this morning, mainly in response to higher US Treasury bond yields, which are increasing the attractiveness of dollar-denominated fixed income assets and supporting demand for the greenback. According to IG, the ISM manufacturing index in the United States adds to recent data showing that the “disinflation” process is complicated. Corpay believes in a note that March arrives in force “with a renewed appetite for risk across all asset classes, thanks to signs of a stronger than expected recovery in the Chinese economy.”

After signs of renewed demand on Wednesday, crude oil prices gave way on Thursday. According to CMC Markets, the well-made Chinese PMIs for the month of February suggest that demand for black gold could remain strong in this key market. According to Tyche Capital Advisors, if the Fed raises rates even more sharply at its next meeting, it could put pressure on stocks and lead to a weakening of the energy market. For the firm, overall, the risk is “definitely on the rise for energy markets.”

The April contract for light sweet crude (WTI) traded on Nymex fell 11 cents to $77.58 per barrel and the May North Sea Brent contract lost 8 cents to $84.23 per barrel around 7:30am.