by Laetitia Volga
PARIS (Reuters) – Wall Street is expected to rebound slightly at the opening and European stock markets are moving without much change mid-session on Wednesday pending announcements of inflation figures in the United States, an important issue for the developments in short-term financial markets and the monetary policy of the US Federal Reserve.
Futures contracts signal an increase of 0.23% for the Dow Jones and for the Standard & Poor’s-500 and 0.26% for the Nasdaq the day after a session in the red, marked by the wait-and-see attitude and the decline in the technology sector after disappointing forecasts from Micron
In Paris, the CAC 40 is stable (-0.01%) at 6,489.1 at 10:38 GMT. In Frankfurt, the Dax advances by 0.22% and in London, the FTSE by 0.08%.
The pan-European FTSEurofirst 300 index, Eurozone EuroStoxx 50 and Stoxx 600 are up 0.03%.
Risk-taking is all the more limited in August by the imminence of the publication, at 12:30 GMT, of consumer prices in the United States for the month of July, which could revive or temper expectations. of a big Fed rate hike next month.
According to the Reuters consensus, the CPI index is expected to rise by 0.2% over one month and by 8.7% on an annual basis, which would constitute a slowdown compared to the previous month, but the basic index, which excludes energy and food, could accelerate to 6.1% over one year.
“Even if inflation eases slightly, the Fed will look to push forward with a 75 basis point hike next month because it is confident the labor market can sustain another big hike,” he said. said David Madden, analyst at Equiti Capital. “We are still a long way from the (Fed’s) 2% inflation target.”
WALL STREET VALUES TO FOLLOW
VALUES IN EUROPE
In Europe, the defensive sectors are among the biggest declines: that of health loses 0.59% and that of food and beverages 0.42%.
On the Amsterdam Stock Exchange, the distributor Ahold Delhaize climbed 7.76% after again raising its forecast for annual earnings per share and the bank ABN Amro (-0.63%) went into the red after taking up to 4.6% in reaction to better than expected quarterly results, the release of provisions having offset the increase in costs.
The tour operator TUI lost 3.18% in Frankfurt after publishing a quarterly loss, a consequence of the additional costs generated by the disruption of air traffic in Europe.
RATES Yields on US Treasuries are down as inflation figures approach, erasing some of their gain on Tuesday: the ten-year fell to 2.7864%, the two-year to 3.2596%.
In the European market, the German ten-year yield lost almost three basis points and stood at 0.898% as investors in the euro zone now believe that another hike of half a point in the Bank’s rates is certain. Central European in September, Refinitiv data shows.
CHANGES
Following the decline in Treasuries yields, the dollar lost 0.21% against a basket of reference currencies .DXY>, which allowed the euro to rise slightly, to 1.0232.
OIL
Oil prices fell a little ahead of US inflation and after the publication by the American Petroleum Institute (API) of a larger than expected increase in crude inventories in the United States last week.
Brent lost 0.97% to 95.38 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.01% to 89.59 dollars.
(Written by Laetitia Volga, edited by Jean-Stéphane Brosse)
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