PARIS (Reuters) – The main European stock markets are expected to be without direction at the opening on Tuesday, in a session which will be rather calm on the macroeconomic level, and pending the publication during the week of inflation figures favored by the Federal Reserve .
According to the first available indications, the Parisian CAC 40 could gain 0.03% at opening.
Futures contracts report a stable Dax in Frankfurt, as well as a drop of 0.31% for the FTSE in London and 0.1% for the Stoxx 600.
The stock markets are expected to move on Tuesday with slight variations in the absence of a major catalyst, with all eyes focused on Friday’s publication of the PCE price index in the United States, the measure of inflation favored by the Federal Reserve, as well as as well as data on inflation in several European countries.
The stock market week will also be shortened on most markets to four days due to the Easter weekend.
Central banks’ plans on rates also call for caution, with some mixed messages from Fed policymakers casting doubt on the timing of cuts.
Austan Goolsbee, president of the Chicago Fed, said Monday that he expects three rate cuts this year, while Lisa Cook, governor of the Fed, called for caution and Raphael Bostic, president of the Fed Atlanta reiterated its comments from Friday on a single drop.
In Europe, markets seem to ignore the latest comments from central bankers such as that of Fabio Panetta, who reaffirmed on Monday that the European Central Bank (ECB) was moving towards lowering its rates.
The only data expected today in Europe, the survey on German consumer morale published by the GfK institute will give at 8:00 a.m. an overview of the economic prospects of Europe’s largest economy.
A WALL STREET
The New York Stock Exchange ended down on Monday amid profit-taking after its recent rally.
The Dow Jones index lost 0.41%, the broader S&P-500 lost 0.31%, and the Nasdaq Composite fell 0.27%.
IN ASIA
The Tokyo Stock Exchange ended mixed on Tuesday, as gains in chip-related stocks offset declines in stocks such as Uniqlo owner Fast Retailing and Nissan Motor.
The Nikkei index lost 0.04%.
In China, the recent weakness of the yuan against the dollar is affecting investor sentiment, with attention also focused on policy support for the real estate sector as the Chinese regulator pushes banks to speed up approval of new loans to private developers in lack of liquidity, Reuters reported on Monday.
In China, the Shanghai Stock Exchange composite index fell 0.04%, while the CSI 300 of large caps advanced 0.35%.
The Hong Kong Stock Exchange gains 0.94%
RATES/EXCHANGES
U.S. yields rose Monday after the sale of $66 billion in two-year Treasury bonds.
The yield on ten-year Treasuries is moving at 4.2435% and that at two years, more sensitive to rate expectations, at 4.5951%.
On the foreign exchange market, the dollar lost 0.31% against a basket of reference currencies, due in particular to expectations on Fed rates, while the euro rose 0.12% to 1.0849 dollars. .
Speculation of intervention by the Japanese authorities to prevent a further fall in the yen also exerted slight pressure on the greenback.
The Japanese currency traded at 151.32 yen per dollar, up 0.06%.
OIL
Oil prices are stable on Tuesday.
Brent lost 0.03% to $86.72 per barrel, with American light crude (West Texas Intermediate, WTI) falling 0.04% to $81.92 CLc1.
(Written by Diana Mandiá)
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