PARIS (Reuters) – Wall Street is expected to be hesitant at the opening, while European stock markets fell during a session marked by cautious investors, the end deemed imminent of rate hikes in the United States not sufficient to compensate for anemic Chinese growth.
New York index futures suggest a mixed opening on Wall Street, with the Dow Jones losing 0.23%, while the Standard & Poor’s 500 and Nasdaq are flat.
In Paris, the CAC 40 lost 1.25% to 7,282.7 points around 10:45 GMT. In Frankfurt, the Dax fell by 0.5% and in London, the FTSE eroded by 0.29%.
The pan-European FTSEurofirst 300 index lost 0.55%, the EuroStoxx 50 1.08% and the Stoxx 600 0.57%.
Chinese growth figures surprised by their weakness: China on Monday morning reported economic growth of 6.3% year on year, well below the consensus which expected growth of 7.3% .
However, “any stimulus to the Chinese economy will be much more modest than in the past, due to the high indebtedness of local governments and the smoldering real estate crisis”, estimate Rabobank experts, which limits the prospects for rebound in Chinese activity.
These data came to obscure the slowdown in inflation in the United States, confirmed by data published in recent weeks.
Investors are showing caution as Fed governors enter a “blackout” period ahead of July’s monetary policy meeting.
The results of the seven main American technology companies are also expected this week, and a disappointment on these securities with very expensive valuations could weigh on the equity markets.
THE VALUES TO FOLLOW IN WALL STREET
Tesla gained 1.8% ahead of the stock market, the group having announced in a tweet that it had built its first Cybertruck in its factory in Austin, Texas, a concept presented in 2019 by general manager Elon Musk.
Activision Blizzard rose 4.5% in pre-market trading, after Microsoft and Sony signed an agreement guaranteeing the maintenance of Call of Duty, a video game published by Activision Blizzard, on Sony’s gaming platforms.
VALUES TO FOLLOW IN EUROPE
Argenx jumps 26.1% to the top of the Stoxx 600, after announcing that its treatment for chronic inflammatory demyelinating polyneuropathy (CIDP) has achieved its main target, with patients showing a 61% reduction in risk of relapse compared to placebo .
TomTom climbs 12.2% on higher revenue and free cash flow guidance
In Paris, the Casino action is suspended at the request of the Saint-Etienne distributor pending the publication of a press release.
Poor Chinese growth data weighs on the luxury sector, which is highly exposed to Chinese consumers: the European luxury sector index fell by 4.3%. LVMH, Hermès and Kering lost between 2.1% and 4.5%, at the bottom of the CAC 40, while Richemont, the second largest luxury group in the world which also reported disappointing sales in the United States in the first quarter. , tumbles 9.2%.
RATE
Rates are falling in anticipation of the end of US rate hikes, after confirmation last week of slowing inflationary pressures.
The German 10-year yield fell 5.1bp to 2.424%, while the two-year rate stagnated.
The ten-year Treasury yield fell 4.bp to 3.7794%, while the two-year rate lost 2.8bp to 4.7233%.
CHANGES
Currency traders remain cautious in the absence of a clear direction for US monetary policy.
The dollar fell 0.10% against a basket of benchmark currencies.
Conversely, the euro strengthened by 0.07% to 1.1234 dollars, while the pound sterling stagnated, up 0.02% to 1.3091 dollars.
OIL
Weak Chinese figures are weighing on crude, with market participants worried about the state of global demand in the second half.
Brent fell 1.43% to $78.61 a barrel, with US light crude (West Texas Intermediate, WTI) falling 1.46% to $74.20.
(Writing by Corentin Chapron, editing by Kate Entringer)
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