by Laetitia Volga
PARIS (Reuters) – Wall Street is expected to fall on Wednesday, like European markets at mid-session, after a new disappointing Chinese economic indicator.
After a day off on Tuesday due to a national holiday in the United States, Wall Street is expected to fall by 0.4% to 0.5%, according to the “futures” on indices.
The publication of the minutes of the Federal Reserve’s latest monetary meeting, scheduled for 18:00 GMT, could provide more indications to market participants as to the pace of tightening ahead. In Paris, the CAC 40 lost 0.55% to 7,329.34 around 11:15 GMT. In Frankfurt, the Dax fell 0.44% and in London, the FTSE fell 0.55%.
The pan-European FTSEurofirst 300 index fell 0.5%, the Eurozone EuroStoxx 50 fell 0.6% and the Stoxx 600 fell 0.51%.
China’s services sector, which had rebounded sharply after the lifting of health restrictions, grew in June at its slowest pace in five months, according to the PMI index calculated by Caixin/S&P.
“With the prospect of increased demand from the world’s second-largest economy receding, it’s no surprise to see appetite for equities waning, particularly for tech and consumer stocks. basic materials, which are among the largest declines,” said Pierre Veyret of ActivTrades.
The results of the PMI surveys in the eurozone, showing that activity fell into contraction, also impacting market sentiment. Citing pressure from high interest rates from the European Central Bank, Citigroup lowered its 2023 growth forecast for the euro zone from 1.1% to 0.8%. WALL STREET VALUES TO FOLLOW
VALUES IN EUROPE
Sectors sensitive to the Chinese theme fell, like basic resources (-1.29%). ArcelorMittal yields 1.44%, when Anglo American loses 2.66%.
In Paris, luxury stocks are also suffering from news from China: LVMH fell by 0.81% and Kering by 2.44%.
Another dark day for the Casino retail group, which fell 29.22% to 3.236 euros after the communication of the two capital injection offers received which augur a massive dilution for shareholders.
RATES/EXCHANGE Yields on government bonds lost ground, a decline favored by a climate of risk aversion.
In Europe, the yield of the German Bund, the benchmark rate for the euro zone, lost two basis points to 2.436% and its American equivalent fell to 3.8605%.
The dollar fluctuates little, traders seeming to hesitate to take positions that are too clear-cut a few hours before the publication of the “minutes” of the Fed.
The euro is trading around 1.0878 dollars.
OIL
On the oil market, Brent is not immune to concerns related to the global economic slowdown. It yielded 0.28% to 76.04 dollars a barrel.
MORE ECONOMIC INDICATOR ON TODAY’S AGENDA
(Laetitia Volga, editing by Kate Entringer)
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