by Blandine Henault
PARIS (Reuters) – The main European stock markets are expected to be on a cautious note at the opening on Tuesday, in a context still dominated by uncertainty over tensions in the Middle East and ahead of numerous economic indicators which should give clues as to the future trajectory of interest rates.
Futures contracts report an increase of 0.11% for the Parisian CAC 40, quasi-stability (-0.01%) for the Dax in Frankfurt, a decline of 0.03% for the FTSE in London and a decline by 0.14% for the Stoxx 600.
Investors will be attentive in the morning to the publication of the “flash” PMI indices in Europe, considered to be good indicators of economic activity and which should signal a contraction for the month of October.
These data will come two days before a monetary policy meeting of the European Central Bank (ECB) and as the publication season of corporate results accelerates.
VALUES TO FOLLOW:
The results of Orange and Hermès were published before the opening as well as those of Barclays, among others.
A WALL STREET
The New York Stock Exchange ended mixed on Monday, as bond yields fell and investors prepared for a week full of quarterly results, with about a third of the companies in the S&P-500, and the publication of data highly anticipated economic benefits.
The Dow Jones index lost 0.58% to 32,936.41 points. The broader S&P-500 lost 0.17%, to 4,217.04 points. The Nasdaq Composite advanced 0.27% to 13,018.33 points.
Futures contracts on the three indices are currently reporting an increase of between 0.2% and 0.4% at the opening.
IN ASIA
The Tokyo Stock Exchange increased by 0.2% at the end of a volatile session marked by the plunge of the electric motor manufacturer Nidec (-10.52%) which left its annual forecast unchanged despite an increase in its quarterly results .
In China, the stock markets are attempting a rebound: the CSI 300 index rose by 0.38% but the Hong Kong HSI lost 0.71%.
RATE
The yield on ten-year Treasuries is almost unchanged, at 4.842%, after the decline recorded at the end of the day on Monday following a peak above 5%.
In Europe, the yield on the German Bund of the same maturity fell by three basis points, to 2.837%.
CHANGES
The dollar is moving little while awaiting the American economic indicators expected in the coming days: Q3 GDP on Thursday and inflation on Friday.
The euro is moving slightly higher before the PMI, to 1.0684 dollars.
For its part, bitcoin rose 2.6% to $33,933, reaching a nearly 18-month high after already soaring 10% on Monday on speculation concerning the imminent launch of an ETF fund holding bitcoin.
OIL
Crude prices are increasing and regaining some of the ground lost the day before, investors remaining nervous about the implications of the conflict between Israel and Hamas in the Middle East.
A barrel of Brent from the North Sea gained 0.31% to $90.11 and that of American light crude (WTI) gained 0.28% to $85.73.
(Written by Blandine Hénault, edited by Bertrand Boucey)
©2023 Thomson Reuters, all rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. “Reuters” and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.