by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to be in disarray on Tuesday and European stock markets are also moving disparately mid-session amid hesitation as investors are torn between hopes of an agreement in Congress on raising of the US debt ceiling and caution ahead of a series of economic indicators expected at the end of the week.
Futures on New York indices signal an opening on Wall Street down 0.08% for the Dow Jones, but up 0.61% for the Standard & Poor’s 500 and 1.38% for the Nasdaq. The New York Stock Exchange was closed on Monday for Memorial Day.
In Paris, the CAC 40 dropped 0.41% to 7,273.97 points around 11:35 GMT. In London, also closed on Monday for the “Spring Bank Holiday”, the FTSE fell by 0.67%. In Frankfurt, the Dax, carried in particular by Infineon (+ 2.9%) takes 0.56%.
The pan-European FTSEurofirst 300 index lost 0.22%, while the euro zone’s EuroStoxx 50 advanced 0.31%. The Stoxx 600 lost 0.03%.
A handful of elected Republicans said on Monday they were ready to oppose the compromise agreement reached on Sunday between Democratic President Joe Biden and the “speaker” of the House of Representatives, Republican Kevin McCarthy, on raising the ceiling. of US debt.
But according to Christopher Wong, strategist at OCBC, “markets are somewhat taking for granted that the debt deal will get the blessing of Congress” and are more focused on the economic data expected at the end of the week.
This week will be published the monthly PMI indices of activity in Europe and the United States (Thursday and Friday), data on inflation in several countries in Europe (Wednesday and Thursday), the minutes of the last policy meeting monetary policy from the ECB (Thursday), the beige book from the Fed (Wednesday) and the monthly US employment report (Friday).
These statistics are likely to influence the path of interest rates and the evolution of the economy as today’s data show that economic sentiment in the euro zone has deteriorated to 96.5 this month, after 99.3 the previous month, while consumer confidence in the currency bloc was confirmed at -17.4 in May. The growth of corporate loans in the euro zone also slowed down again in April, to +4.6% over one year, against +5.2% the previous month.
WALL STREET VALUES TO FOLLOW
Nvidia gained 3.9% ahead of the market, becoming the first semiconductor company to exceed the $1 trillion market capitalization threshold on the back of a series of announcements on technology products and partnerships in artificial intelligence.
VALUES IN EUROPE
The European technology compartment (+1.84%) in the wake of the “future” Nasdaq, driven in particular by Nvidia, posted the best sector performance of the Stoxx 600.
Defensive segments such as utilities (+0.97%) and real estate (+0.62%) are also in demand in a context of economic uncertainty.
In individual values, in Paris, Valneva is in the green after having filed in Canada a request for marketing authorization for its vaccine candidate against chikungunya.
Elsewhere in Europe, Unilever dropped 2.35% with the announcement on Tuesday of the departure of its chief financial officer Graeme Pitkethly, while Nestlé lost 2.66% after the resignation of its chief financial officer Francois-Xavier Roger.
RATE
Eurozone government bond yields are falling ahead of bloc inflation data due on Thursday. Consumer price growth in Spain slowed more sharply than expected in May, to +2.9% year on year after +3.8% the previous month.
The ten-year German Bund yield, the benchmark for the euro zone as a whole, fell more than five basis points, to 2.373%, while the two-year yield, the most sensitive to interest rate expectations, fell by almost seven points, to 2.847%
In the United States, the yields of ten-year and two-year Treasuries respectively dropped ten basis points to 3.7192% and around eight points to 4.5163%.
CHANGES
The dollar lost ground (-0.17%) against a basket of reference currencies without however moving significantly away from its two-month peak hit on Friday, at 104.42 points.
The euro took the opportunity to rise to 1.0733 dollars (+0.26%)
OIL
Oil prices are affected by uncertainties over the new production quotas of OPEC + which meets on June 4: Brent loses 1.52% to 75.9 dollars a barrel and WTI 1.14% to 71, $84.
(Some data may show a slight shift)
(Written by Claude Chendjou, edited by Jean-Stéphane Brosse)
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