European equity markets are expected to rise after the close in the green of Wall Street. Eurostoxx 50 at 3,436.29 points (-0.82%), SMI at 10,453.31 points (-0.71%), AEX at 635.93 points (-0.93%), BEL 20 at 3,647.22 points (-1.50%), IBEX 35 at 8,106.40 points (-0.48%), DJIA at 30.677.36 points (+0.64%), The Nasdaq at 11,232.19 points (+1.62%), the S&P 500 at 3,795.73 points (+0.95%) and the Nikkei 225 at 26,487.15 points (+1.21%).

As for exchange rates, the change compared to the close in New York was EUR/USD at 1.0539 (+0.14%), EUR/JPY at 142.01 (+0.01%), and USD/JPY at 134.76 (-0.15%).

European equity markets are expected to open higher on Friday, following the two-day hearing of Federal Reserve (Fed) Chairman Jerome Powell before Congress, with investors continuing to assess the trajectory of interest rates ; and in the United States. Around 7:40am, the futures contract on the CAC 40 gained 58 points, or 1%, according to data from the broker IG Markets, the contract on the DAX 40 rose by 100.5 points, or 0.8%, and the one on the FTSE 100 gained 52.5 points, or 0.8%. Investors will watch the June release of the IFO German Business Climate Index and the University of Michigan Household Confidence Index in the United States on Friday. Backed by a rebound in tech stocks and the fall in oil prices, the New York Stock Exchange traded higher on Thursday, following another hesitant session.
Heard by the House of Representatives' Financial Services Committee on Thursday for the second part of its semi-annual report on monetary policy, Fed Chairman Jerome Powell reiterated that it would be tricky for the central bank to reach a soft landing of the economy with the rapid increase in interest rates to fight inflation. He reiterated that a recession was not inevitable, but stressed his “unconditional” commitment to fighting inflation. “I think the Fed is not bothered by the growth slowdown if it causes a small recession,” says Anthony Saglimbene, global markets strategist at Ameriprise Financial. In Asia, markets rose sharply on Friday. The Nikkei index gained 1.2% at the end of the session in Tokyo. The Hang Seng on the Hong Kong Stock Exchange won 1.5% and the Shanghai Composite rose by 0.4%.

US Treasury bond yields rose on Friday morning, after falling for the second day in a row on Thursday, but without moving much away from their highest levels in more than a decade. Around 7:40am, the 10-year Treasury bond rate gained around 1 basis point, to 3.096%.

The euro gains some ground against the dollar on Friday morning but remains stable against the yen. The greenback fell against the Japanese currency. The dollar is suffering from a stronger appetite for risk on the part of investors, as Asian equity markets and American index futures are rising.

Oil futures rose slightly on Friday morning. At 7:30am, the August North Sea Brent contract won 46 cents, at $110.51 per barrel. The same-term contract for mild mild crude oil (WTI) listed on Nymex rose by 62 cents, to $104.89 per barrel. WTI has lost more than 10% over the past week, OCBC says. In the short term, the market should mainly focus on inflation figures in the United States.