(Repeat on Chinese growth)
by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to fall on Tuesday after a long weekend linked to the celebration of Martin Luther King Day and European stock markets also fell slightly at mid-session after Chinese economic statistics which show in particular a sharp slowdown in GDP growth in 2022.
Futures contracts in New York suggest a decline of 0.20% for the Dow Jones, 0.30% for the Standard & Poor’s 500 and 0.39% for the Nasdaq as Goldman Sachs and Morgan Stanley are due to publish their quarterly accounts before the opening of the session.
In Paris, the CAC 40 fell by 0.2% to 7,029.45 around 11:40 GMT. In Frankfurt, the Dax dropped 0.14% and in London, the FTSE contracted 0.18%.
The pan-European FTSEurofirst 300 index fell by 0.15% and the EuroStoxx 50 in the euro zone by 0.22%. The Stoxx 600, which recorded four consecutive sessions in the green, lost 0.18% amid renewed fears of an impending recession as the world’s big moneymakers have been meeting since Monday in Davos, Switzerland.
China’s gross domestic product (GDP) growth, which fell to 3.0% in 2022, was one of the weakest in nearly 50 years amid health restrictions and a housing market crisis.
In other Chinese statistics, industrial production slowed to 1.3% year on year in December after rising 2.2% in November and retail sales fell 1.8% last month. after -5.9% in November.
In Germany, the industry federation (BDI) said on Tuesday it expects the country’s economy to shrink by 0.3% this year, anticipating a continuation of the energy crisis.
The ZEW index of investor sentiment in Germany, however, turned positive again for the first time since February, rising to 16.9 in January after -23.3 in December, with the hope of a recession a little less severe than feared. previously.
The trend is also penalized by worries about inflation. While the increase in consumer prices in Germany has been confirmed as a deceleration of 9.6% over one year, this figure remains high. Philip Lane, chief economist of the European Central Bank (ECB), said on Tuesday that the Frankfurt institution should continue to raise its rates in the face of inflation.
In the United Kingdom, wage growth recorded one of its strongest accelerations over the three months to the end of November, with an average increase, excluding bonuses, of 6.4% over one year. WALL STREET VALUES TO FOLLOW
VALUES IN EUROPE
On the pan-European Stoxx 600, sectors sensitive to changes in interest rates and those exposed to China are among the biggest decliners.
The new technologies index contracted by 0.8%, that of the automobile by 0.9, while luxury stocks such as Richemont (-1.04%), Kering (-1.23%) or even LVMH (-0.30%) are in the red. However, the market capitalization of LVMH briefly exceeded the threshold of 400 billion euros during the session for the first time.
Ocado (-6.54%) weighs on Britain’s Footsie as its online supermarket joint venture with Marks & Spencer reported slowing demand ahead of Christmas due to the high cost of living.
CHANGES
The pound rose 0.25% to 1.2227 dollars after the figures on wages in the United Kingdom, a data closely watched by the Bank of England (BoE) in setting its interest rates.
The Japanese currency, at a seven-month high against the US currency, is trading at 128.9 yen to the dollar pending the conclusions of Wednesday’s two-day Bank of Japan (BoJ) meeting.
The euro was almost unchanged at 1.0816 dollars, while the greenback appreciated by 0.19% against a basket of six reference currencies.
RATE
Bond yields in Europe vary little: the ten-year German appears at 2.17%, down two basis points, against a one-month low hit last Thursday at 2.06%.
In the United States, the yield on ten-year American Treasuries rose by around three basis points, to 3.54%
OIL
Oil prices remain supported by hopes of a rebound in demand in China despite the mixed economic indicators of the day.
Brent advanced 0.82% to 85.15 dollars a barrel and American light crude (West Texas Intermediate, WTI) gleaned 0.09% to 79.93 dollars.
(Written by Claude Chendjou, edited by Kate Entringer)