by CORENTIN CHAPPRON
PARIS (Reuters) – Wall Street is expected on a mixed note on Wednesday, while European stock markets hesitate at midday in a context of caution before the publication of key indicators.
New York index futures suggest a hesitant Wall Street open, with the Dow Jones flat, while the Standard & Poor’s 500 fell 0.10% and the Nasdaq 0.19%.
In Paris, the CAC 40 lost 0.30% to 7,350.99 points around 10:47 GMT, against an increase of 0.31% for the FTSE in London, and a drop of 0.29% for the Dax in Frankfurt.
The pan-European FTSEurofirst 300 index dropped 0.25%, compared to 0.35% for the EuroStoxx 50 and 0.17% for the Stoxx 600.
Caution took over the markets in the late morning during a volatile session, while inflation indicators in Germany and the United States are expected at 12:00 GMT and 12:30 GMT respectively. Spanish inflation, published earlier in the day, is up on the previous month, while regional inflation figures in Germany raise fears that price dynamics will pick up again across the Rhine.
“We expect markets to be highly sensitive to even slight deviations from consensus, especially on Germany’s (inflation) numbers and Eurozone numbers,” the strategists wrote. ‘ING.
“Our economists expect this week’s inflation reports to signal that core inflation remains too high to be comfortable and lead the ECB to a final rate hike in September.”
Inflation in the euro zone is expected on Thursday, while the monthly US employment report will be published on Friday, two key indicators for the trajectory of monetary policies on both sides of the Atlantic.
THE VALUES TO FOLLOW IN WALL STREET
Hewlett Packard Enterprise tumbles ahead of opening after announcing forecast of revenue between $7.2 billion and $7.5 billion for the current quarter, with the median below analysts’ expectations of $7.49 billion of dollars.
VALUES TO FOLLOW IN EUROPE
Eramet collapsed by 16.67%, at the bottom of the SBF120, after having suspended its activities in Gabon following the coup d’etat. The basic resources sector, on the other hand, rose by 0.72%.
Orsted, the world’s largest developer of offshore wind farms, said on Wednesday it could face writedowns of $2.3 billion in the United States due to supply chain issues, soaring interest rates interest and the absence of new tax credits. The action plunged 20.29%, at the bottom of the Stoxx 600, and dragged down the utilities sector in its fall, down 1.78%. Casino loses 11.74% after Fitch lowers default rating for long-term currency issues
RATE
Bond yields are rising as investors position themselves ahead of German and US inflation indicators.
The German ten-year yield rose 6.6 bp to 2.576%, while that of the two-year rate rose 6.1 bp to 3.095%.
The ten-year Treasury yield gained 2.7 bp to 4.1491%, versus 2.3 bp to 4.9129% for the two-year.
CHANGES
Currency markets remain calm ahead of expected indicators.
The dollar fell 0.05% against a basket of benchmark currencies, while the euro nibbled 0.07% to 1.0885 dollars and the pound sterling 0.07% to 1.2647 dollars.
OIL
Crude prices post modest gains amid concerns over the implications of Cyclone Idalia for US production and after figures from the American Petroleum Institute, cited by market sources, showing a bigger than expected pullback in oil stocks gross last week in the United States.
Brent rose 0.71% to $86.1 a barrel, with US light crude (West Texas Intermediate, WTI) rising 0.80% to $81.81.
(Written by Corentin Chapron, edited by Blandine Hénault)
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