by CORENTIN CHAPRON
PARIS (Reuters) – European stock markets are expected to rise at the opening on Wednesday, with the results season continuing on both sides of the Atlantic.
Futures contracts suggest an opening increase of 0.11% for the Parisian CAC 40, compared to 0.56% for the FTSE in London, 0.35% for the Dax in Frankfurt, and 0.36% for the EuroStoxx 50.
Tesla’s results, published Tuesday after the close, were less good than expected but the car manufacturer announced the launch of new models, initially planned for the second half of 2025.
The action takes 12% before the opening, fueling a rally in technology stocks whose continuation will depend on the results published Wednesday and Thursday.
Meta Platforms will report its numbers after the close on Wednesday, while Microsoft and Alphabet will announce their quarterly numbers after the close on Thursday.
In Europe, some results will liven up discussions in the absence of first-rate indicators, including those of the French Kering and Volvo Car AB. The results of Carrefour and Moncler will be expected after the close.
Better than expected PMI indicators also continue to support risky assets: the EuroStoxx 50 volatility indicator continues to decline after the peak reached last week.
“The gradual recovery of the eurozone economy has been expected for some time and is unlikely to have an impact on the ECB’s decision to start cutting interest rates in June,” write strategists at ING.
“Markets are less certain of future rate cut dates and could begin to be more sensitive to the risks posed by growth” on these cuts, they warn, however.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended higher on Tuesday after the release of strong quarterly results from leading companies, as investors await results from Wall Street’s ‘Magnificent Seven’ and other high-growth stocks.
The Dow Jones index gained 0.69%, or 263.71 points, to 38,503.69 points. The broader S&P-500 gained 59.95 points, or 1.20%, to 5,070.55 points. The Nasdaq Composite advanced 245.34 points (1.59%) to 15,696.64 points.
General Motors raised its annual forecasts on Tuesday and ended the session up 4.4%.
IN ASIA
The Tokyo Stock Exchange posted its third consecutive session of gains, supported by technology stocks and the performance of Wall Street. The Nikkei index gained 2.42% to 38,460.08 points and reached a one-month high, and the broader Topix gained 1.67% to 2,710.73 points.
Semiconductor-related stocks posted significant gains. Tokyo Electron gained 6.68%, Advantest advanced 3.41%, Renesas Electronics 10.35% and chip manufacturing equipment supplier Disco strengthened 4.5%.
Chinese indices are advancing in the wake of American markets. The Hong Kong Hang Seng index 2.14%, the Shanghai SSE Composite 0.52%, the CSI 300 is unchanged.
RATE
US yields rebound slightly after declining on Tuesday, with US PMI indicators hitting a four-month low.
The ten-year Treasury yield increased by 2.1 to 4.6232%, while the two-year rate strengthened by 2.6 bp to 4.9331%.
The yield on the German ten-year rose by 2.6 bp to 2.532%, while that of the two-year rate increased by 2.1 bp to 3.007%.
CHANGES
Foreign exchange markets are stable, with only orders for durable goods likely to cause the markets to react on Wednesday. Investors will also be attentive to movements in the yen, as Japanese Finance Minister Shunichi Suzuki said the currency’s weakness was a source of concern for Japan, South Korea and the United States.
In Asia, the yen is standing still at 154.91 yen per dollar, close to a 34-year low, while the Australian dollar rose 0.42% to 0.6512 dollars.
The dollar is stable against a basket of reference currencies, while the euro remains at $1.0695 and the pound sterling at $1.2443.
OIL
Crude is up slightly as US oil inventories fell by 3.2 million barrels last week compared to a consensus of a rise of 0.8 million barrels, according to market sources citing the American Petroleum Institute.
Brent nibbles 0.11% to 88.52 dollars per barrel, American light crude (West Texas Intermediate, WTI) rising 0.13% to 83.47 dollars.
MAIN ECONOMIC INDICATORS ON THE AGENDA FOR APRIL 24
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
FROM 08:00 Ifo climate index for April 88.8 87.8
business
USA 12:30 p.m. Durable goods orders March +2.5% +1.3%
(Written by Corentin Chappron, edited by Blandine Hénault)
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