Stock market: Europe declines with Asia and ahead of a US employment indicator

PARIS (Reuters) – The main European stock markets fell on Tuesday morning in the wake of most places in Asia where investors opted for profit taking after recent gains while awaiting new economic indicators in the States -United.

In Paris, the CAC 40 lost 0.62% to 7,948.49 points around 07:30 GMT. In London, the FTSE 100 lost 0.35% and in Frankfurt, the Dax lost 0.43%.

The EuroStoxx 50 index fell by 0.62%, the FTSEurofirst 300 by 0.37% and the Stoxx 600 by 0.45%. The main pan-European index is affected by a further decline in oil following Sunday’s OPEC+ announcements, with the energy sector falling 2.04%.

Futures contracts on Wall Street predict a drop of 0.17% for the Dow Jones, 0.25% for the Standard & Poor’s 500 and 0.36% for the Nasdaq the day after a session in dispersed order, marked by disappointing data on manufacturing activity in the United States in May.

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For today’s session, investors are awaiting new economic data such as the Jolts report on job offers in the United States as well as the unemployment rate in Germany.

The American labor market is being monitored before Friday’s publication of the official monthly employment report in the United States.

“We expect a slight slowdown in labor demand in the US market,” said Raisah Rasid, market strategist at JPMorgan Asset Management, adding that this could strengthen hopes of a drop in labor rates. the Fed in September.

On the bond market, the yield on ten-year Treasuries is practically stable, at 4.3904%, and that on the German Bund of the same maturity is down by almost four basis points, at 2.547%, while the ECB is expected to lower its key rates by 25 basis points on Thursday.

In Asia-Pacific, the Japanese Nikkei index ended down 0.22% at 38,837.46 points, while the MSCI index bringing together stocks from Asia and the Pacific (excluding Japan) lost 0.4%.

Indian indices NIFTY 50 (-6.38%) and S&P BSE Sensex (-5.94%) are also in the red, after hitting a four-year low. Early trends in vote counting for the legislative elections indicate that Prime Minister Narendra Modi’s BJP-led alliance is unlikely to achieve the tidal wave predicted by exit polls.

In corporate news, Ap Moeller-Maersk rose 0.95% after raising its full-year profit forecast for the second time in a month.

British American Tobacco declined by 1.76%, with the group anticipating a slight drop in its half-year turnover.

Deutsche Telekom drops 2.25% while the German public bank KfW announced on Monday a sale of 2.7 billion euros of its stake in the telecoms operator.

(Written by Claude Chendjou, edited by Blandine Hénault)