Equity markets expected to rise, hopes of stimulus persist 
 

Eurostoxx 50 3,255.76 points +0.69% 
CAC 40 4,911.94 points +0.61% 
DAX 30 13,042.21 points +0.88% 
FTSE 100 5,978.03 points +0.53% 
SMI 10,270.24 points +0.81% 
AEX 559.94 points +0.96% 
BEL 20 3,369.84 points +1.33% 
IBEX 35 6,992.80 points +1.20% 
 
DJIA 28,425.51 points +0.43% 
Nasdaq 11,420.98 points +0.50% 
S&P 500 3,446.83 points +0.80% 
 
Nikkei 225 23,566.95 points -0.34% (price at 7:25 am) 
 
Exchange rate at 07:20 
Change from closing in New York 
 
EUR/USD 1.1776 +0.13% 
EUR/JPY 124.67 -0.02% 
USD/JPY 105.88 -0.15% 

TO FOLLOW IN FRANCE

Statistics on industrial production for August will be published at 8:45 a.m.

Economists polled by Dow Jones Newswires expect industrial production to rise 2.1 percent in August, compared with the previous month. In July, production grew 3.8% month-on-month.

No events are on the corporate agenda on Friday.

actions

European equity markets are expected to open higher on Friday, in the wake of Wall Street's advance, despite confusion surrounding plans for new measures to support the economy in the United States.

Around 7:35 a.m., the CAC 40 futures contract was up 16.3 points, or 0.3%, according to data from broker IG Markets. The CONTRACT on the DAX 30 gained 20.8 points, or 0.2%, and the FTSE 100 contract gained 11.5 points, or 0.2%.

In the UK, there is still a week to go before the Brexit negotiation deadline, and the subject is expected to be a predominant theme. Investors are also keeping an eye on the explosion in the number of Covid-19 cases and the threat of further restrictions.

"The markets are not sufficiently integrating this risk, in my opinion, and the slightest event over the weekend could weigh on the euro and the pound sterling early next week," said Jeffrey Halle, of Oanda.

The New York Stock Exchange ended higher on Thursday as investors were optimistic that a deal would be reached between Republicans and Democrats on new measures to support the economy. The main indices closed at their highest level since early September.

After the procrastination at the beginning of the week provoked by the statements of Donald Trump, who on Tuesday called for a halt to negotiations, discussions for new support measures have resumed between Democrats and Republicans, although the two sides remain at odds on key points.

Democratic House Speaker Nancy Pelosi again stirred up trouble on Thursday by saying she would not support a specific aid package for the U.S. airline industry and that she wanted a more comprehensive economic stimulus deal with the White House and Republicans. of the Congress.

Nancy Pelosi and Treasury Secretary Steven Mnuchin had a brief talk Wednesday about a specific support plan for airlines, which sent the sector's stocks to wall street sharply in early trading.

Democrats have so far opposed the adoption of aid measures for specific sectors, preferring a comprehensive economic recovery plan to combat the pandemic crisis.

In Asia, markets posted a mixed performance on Friday. At the end of the session, the Nikkei lost 0.3% in Tokyo. In mainland China, the Shanghai Composite gained 1.7%, after several days of closure due to the country's national holiday. The Hang Seng lost 0.1% on the Hong Kong Stock Exchange.

China's Caixin Services PMI rose to 54.8 in September from 54 in August, according to data released Friday by Caixin Media and Markit.

Obligations

The ten-year U.S. Treasury yield fell to 0.764% on Thursday from 0.785% on Wednesday, its biggest one-session decline since Sept. 21.

According to Scott Colyer of Advisors Asset Management, markets are struggling to determine bond prices because the Fed uses heavy artillery to keep rates low. "It's hard to know the price of Treasury bonds, with the central bank literally putting a brake on yields," he told the Wall Street Journal.

The recent rebound in Italian government bonds, or BTP, relative to their Spanish counterparts is expected to continue, according to UniCredit, which expects the narrowing trend in spreads to continue at least until the end of the year.

"This is the result of the Eurosystem's greater support for btps than for Spanish government bonds, which, together with the political consensus on the recovery plan of the European Union, triggered a yield hunt and led to the narrowing of spreads between government bonds in the zone. Euro," says Chiara Cremonesi, Deputy Head of Strategy for Interest Rate Markets at UniCredit.

FOREIGN EXCHANGE

The euro gained some ground on Friday morning against the dollar, but moved little against the yen. The greenback is down against the Japanese currency.

Most Asian currencies are strengthening against the dollar, while hopes for further stimulus in the United States are accompanied by a stronger appetite for risk.

Markets were encouraged by US President Donald Trump's new about-face, which on Thursday opened the door to a sweeping stimulus package after Nancy Pelosi rejected a separate aid package for the airline industry. indicates Commerzbank.

Oil

Oil prices are losing ground on Friday morning, but could be supported in the short term. The market is likely to be watching For Hurricane Delta, which has halted about 80 percent of production in the Gulf of Mexico and is expected to reach Louisiana on Friday, ANZ Bank said.

Fears that production could be disrupted in Norway could also support prices, after workers at several offshore sites announced a strike last week, ANZ added.

At 7:25 a.m., the December contract for North Sea Brent was down 13 cents to $43.21 a barrel, while the November contract for Nymex-listed light sweet crude (WTI) was down 9 cents to $41.10 a barrel.