Wait-and-see approach on Wall Street, rebound continues in Europe

by Claude Chendjou

PARIS (Reuters) – Wall Street is expected to see slight variations at the opening on Tuesday ahead of the publication of key economic indicators in the United States, while the European stock markets confirm at mid-session the rebound started on Monday with the lull on rates and the euro.

Futures on New York indices signal an opening on Wall Street down 0.07% for the Dow Jones and 0.01% for the Standard & Poor’s 500, while the Nasdaq could gain 0.15% in a context wait-and-see attitude before the publication of monthly data on retail sales and industrial production in the United States.

In Paris, the CAC 40 rose 0.41% to 7?602.97 points around 11:10 a.m. GMT. In Frankfurt, the Dax rose by 0.41% and in London, the FTSE rose by 0.44%.

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The pan-European FTSEurofirst 300 index gained 0.53%, the Eurozone EuroStoxx 50 0.51% and the Stoxx 600 0.45%.

The positive trend in Europe continues as the spread (the yield gap) between German and French ten-year sovereign rates continues to tighten, to 71.51 points after widening to more than 82 points on Friday against a backdrop of of political risk in France linked to the uncertainty of the early legislative elections of June 30 and July 7.

The return to risky assets is also fueled by the good performance of the Nasdaq, this index rich in new technology values ​​having recorded a sixth consecutive closing record on Monday.

In Europe, the “tech” compartment (+0.6%) is in the green, while that of banks (+1.23%), which suffered last week from the prospect of a victory for the Rally national in the legislative elections, continues its recovery.

“Many investors are now saying that the sharp drop in French stocks we saw last week was exaggerated and that political uncertainties will not necessarily have an impact on the country’s economic outlook,” notes Ipek Ozkardeskaya, analyst. markets at Swissquote Bank.

VALUES TO FOLLOW ON WALL STREET

Boeing CEO Dave Calhoun appears this Tuesday before the US Senate Permanent Investigative Subcommittee regarding the aircraft manufacturer’s safety policy.

VALUES IN EUROPE

Carrefour plunged 8.42% while Bercy requested a sanction for abusive practices towards the distributor’s franchisees.

Schneider Electric takes 1.16% thanks to the increase in Jefferies’ recommendation to “buy”.

STMicroelectronics gained 1.00%, Goldman Sachs having raised its recommendation to “neutral” from “sell” on the European chip maker, noting an improvement in demand in certain markets.

Moncler dropped 3.04%, Oddo BHF having revised downwards its forecast for the luxury group’s operating profit (Ebit), now counting on a sharp slowdown in growth in the second quarter.

RATE

The yield on ten-year US Treasury bonds is stable at 4.2925% before the publication of economic indicators.

That of the German Bund of the same maturity is also practically unchanged at 2.421% while several officials from the European Central Bank (ECB) are due to speak during the day. Luis De Guindos, the institution’s vice president, said Tuesday that the best time to make interest rate decisions coincides with the publication of macroeconomic projections, with the next one expected in September.

CHANGES

The dollar rose by 0.22% against a basket of reference currencies, after a decline of 0.2% on Monday.

The euro is trading at $1.0713 (-0.2%) after hitting a six-week low on Friday at $1.0668.

OIL

Oil prices fell slightly on Tuesday in a consolidation movement after Monday’s increase linked to the prospect of an increase in demand for crude during the summer period in the United States.

Brent fell 0.14% to $84.13 per barrel and American light crude (West Texas Intermediate, WTI) dropped 0.15% to $80.21.

(Written by Claude Chendjou, edited by Blandine Hénault)