European equity markets expected to decline after Wall Street's sharp decline. The Eurostoxx 50 opens at 4,197.07 points (-0.17%), the CAC 40 at 7,101.55 points (-0.41%), the DAX 40 at 15,490.44 points (+0.05% ), the FTSE 100 at 7,672.40 points (+0.38%), the SMI at 12,313.16 points (-0.44%), the AEX at 762.65 points (-0.95%), the BEL 20 at 4,122.70 points (+0.46%), IBEX 35 at 8,886.20 points (+0.45%), DJIA at 35,241.59 points (-1.47%), Nasdaq at 14,185 .64 points (-2.10%), the S&P 500 at 4,504.08 points (-1.81%) and the Nikkei 225 at 27,696.08 points (+0.42%).

Regarding the exchange rate, variation compared to the closing in New York, the EUR/USD opens at 1.1389 (-0.34%), the EUR/JPY at 132.22 (- 0.26%) and USD/JPY at 116.10 (+0.08%).

The pan-European stock exchange operator Euronext published sharply higher results in 2021 on Thursday evening, driven by the increase in its "post-trade" activities following the takeover of Borsa Italiana. Friday, TF1, Rexel, Aperam and Ipsen present their annual results.

European equity markets could open sharply lower on Friday, as the latest inflation figures in the United States led to a 500-point drop in the Dow Jones index on Wall Street. At 7:25 a.m., the CAC 40 futures contract lost 90.9 points, or 1.3%, according to data from broker IG Markets. The DAX 40 contract was down 211 points, or 1.4%, and the FTSE 100 contract was down 83.5 points, or 1.1%. Investors will be watching on Friday for Germany's consumer price index release for January, as well as the first estimate of fourth-quarter gross domestic product (GDP) and UK trade balance figures. Attention will also be drawn to the European Central Bank (ECB) survey of currency analysts and the International Energy Agency (IEA) report on the oil market.

The New York Stock Exchange ended sharply lower on Thursday after the announcement of a sharper-than-expected acceleration in inflation in the United States in January, which raises the threat of a major monetary tightening by the Fed. in the coming months. In Asia, equity markets are reacting more moderately to the sell-off on Wall Street. At the end of the session, the Hang Seng of the Hong Kong Stock Exchange lost 0.7% and the Shanghai Composite yielded 0.4%.

The yield on 10-year US government bonds remains above 2% as the latest inflation figures in the United States have led to an intensification of the selling movement on Treasury bonds. Rates on short-term US government bonds, which are particularly sensitive to the outlook for monetary policy, recorded the biggest increases on Thursday. The two-year stock's yield had its strongest one-day rise since 2009 to end at 1.560%. Yields on longer-term bonds also rose sharply, with the ten-year rate rising above 2% for the first time since mid-2019 to stand at 2.028%.

The euro lost ground on Friday morning against the dollar and the yen, while the greenback appreciated slightly against the Japanese currency. Inflation figures for the United States for January have sparked speculation about an emergency rate hike by the Fed, says City Index. Such a measure could trigger panic and benefit safe assets while particularly penalizing currencies linked to commodities, adds City Index.

Oil prices are trending lower on Friday morning. Increased production quotas from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) and significant additions of non-OPEC nations, including the United States, are expected to ease tensions on the market in 2022, says Fitch. A successful negotiation with Iran should also allow the country's oil to return to the market. At 7:15 am, the April contract on Brent North Sea oil lost 73 cents to 90.68 dollars a barrel. The Nymex-listed light sweet crude (WTI) March contract was down 53 cents at $89.35 a barrel.