PARIS (Reuters) – The main European stock markets are expected to be hesitant at the opening on Tuesday, before inflation data later in the week and as the real estate crisis continues in China.
Futures contracts suggest a directionless opening for the CAC 40 and the FTSE in London, against a rise of 0.12% for the Dax in Frankfurt, and a decline of 0.12% for the EuroStoxx 50.
Investors are preparing for a new session without significant events, while the publication of PCE inflation in the United States on Thursday and inflation in the Eurozone on Friday could force the markets to revise their monetary easing scenarios.
These optimistic scenarios have been one of the main drivers of the rise in risky assets in 2024, and a negative surprise could put pressure on valuations.
As such, comments from monetary policy makers follow one another, with Federal Reserve Board of Governors member Michelle Bowman reiterating Tuesday that the central bank should adopt a “cautious” approach.
In China, Country Garden Holdings, the country’s main private real estate developer, announced on Wednesday that it was subject to a liquidation petition for non-repayment of a $205 million loan.
The request complicates plans to restructure its debt and Beijing’s efforts to restore confidence in the real estate sector, despite the latest measures put in place.
A WALL STREET
The New York Stock Exchange ended mixed on Tuesday, before the publication of a series of key indicators, including data on American inflation, which could give indications on the date from which the Federal Reserve (Fed ) could start its rate cuts.
The Dow Jones index fell -0.25%, or 96.82 points, to 38,972.41 points. The broader S&P-500 gained 8.65 points, or 0.17%, to 5,078.18 points. The Nasdaq Composite advanced 59.05 points (0.37%) to 16,035.30 points.
IN ASIA
The Tokyo Stock Exchange ended slightly lower on Wednesday, catching its breath after hitting a record high the day before and gaining more than 9% over the past three weeks. The Nikkei index lost 0.08% to 39,208.03 points and the broader Topix lost 0.16% to 2,674.19 points.
E-commerce and gaming company DeNA stood out with a 24.45% jump, following the announcement of a new mobile game based on Pokémon trading cards.
Chinese markets closed lower, worried about the latest developments in the real estate market which could complicate the debt restructuring efforts of groups in the sector. The Shanghai SSE Composite lost 1.91%, the CSI 300 1.27%. The Hong Kong Hang Seng index fell 1.5%.
RATE
US yields are falling in the absence of new catalysts.
The ten-year Treasury yield fell 2.5 bps to 4.2895%, while the two-year rate fell 2.5 bps to 4.6871%.
The German ten-year yield is stable at 2.457%.
CHANGES
The New Zealand dollar falls after the local central bank kept rates at current levels and ruled out the possibility of another rate hike.
The New Zealand dollar fell by 1.04%, the yen fell by 0.11% to 150.66 yen per dollar. The Australian dollar fell 0.53% to $0.6508.
The dollar rose by 0.19% against a basket of reference currencies, while the euro declined by 0.19% to $1.0823, and the pound sterling by 0.21% to $1.2656.
OIL
Crude fell after comments from Fed officials and while crude inventories increased by 8.43 million barrels last week, according to sources citing figures from the American Petroleum Institute.
Brent fell by 0.61% to $83.14 per barrel, American light crude (West Texas Intermediate, WTI) fell by 0.62% to $78.38.
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