(Reuters) – The main European stock markets are expected to rise at the opening on Tuesday, with markets remaining wait-and-see before the publication of CPI inflation in the United States on Thursday.
The first available indications indicate that the Parisian CAC 40 would be up 0.36% at the opening. Futures contracts on the FTSE in London suggest an opening advance of 0.34%, compared to 0.28% for the Dax in Frankfurt, and 0.31% for the EuroStoxx 50.
Investors are positioning themselves before the publication of CPI inflation in the United States on Thursday, the main indicator expected this week, and which will be decisive for the trajectory of Federal Reserve rates.
The central bank signaled late last year that peak rates had been reached, but a stronger-than-expected monthly employment report called into question optimistic market projections.
The President of the Atlanta Fed, Raphael Bostic, also recalled on Monday that he favored a restrictive monetary policy, but that he anticipated rate cuts for this year which could reach up to 2%.
Markets estimate the probability that the Fed will cut rates during its March meeting is around 60%.
In the euro zone, the indicators published on Monday were in line with analysts’ expectations, with retail sales showing a decline in November.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended up on Monday, driven by the fall in Treasury yields, even if Boeing penalized the Dow Jones after the new setbacks of its 737 MAX.
The Dow Jones index gained 0.58%, or 216.9 points, to 37,683.01 points. The broader S&P-500 gained 66.3 points, or 1.41%, to 4,763.54 points. The Nasdaq Composite advanced 319.7 points (2.20%) to 14,843.77 points.
IN ASIA
The Tokyo Stock Exchange ended higher on Tuesday, after hitting its highest level since March 1990 overnight, as investors flocked to semiconductor-related stocks following a rise in technology stocks on Wall Street. The Nikkei index gained 1.16% to 33,763.18 points and the broader Topix gained 0.82% to 2,413.09 points.
Tokyo Electron and Advantest gained 3.28% and 6.05% respectively.
Chinese indices continue to fall after five consecutive sessions of losses. The Shanghai SSE Composite fell by 0.28%, the CSI 300 by 0.28%.
RATE
US yields are rising after declining on Monday.
The ten-year Treasury yield rose 2.1 bps to 4.0228%, while the two-year rate rose 3.4 bps to 4.3789%.
CHANGES
Currency markets are calm, with the exception of the yen which is strengthening, supported by strong demand from Japanese exporters.
The dollar gains 0.05% against a basket of reference currencies, while the euro gains 0.05% to 1.0954 dollars, and the pound sterling is stable at 1.2744 dollars.
In Asia, the yen strengthened by 0.19% to 143.94 yen per dollar, while the Australian dollar fell by 0.16% to 0.6707 dollars.
OIL
Oil is falling slightly, worried about lower-than-estimated demand, but supported by uncertainties surrounding the conflict in the Middle East.
Brent fell 0.11% to $76.04 per barrel, American light crude (West Texas Intermediate, WTI) fell 0.3% to $70.56.
MAIN ECONOMIC INDICATORS ON THE AGENDA FOR JANUARY 9:
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
FROM 07:00 Industrial production Nov. 0.2% -0.4%
FR 07:45 Trade balance Nov. -8,597
MDs
EZ 10:00 Unemployment rate Nov. 6.5% 6.5%
(Written by Corentin Chappron, edited by Zhifan Liu)
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