by CORENTIN CHAPRON
PARIS (Reuters) – Wall Street is expected to be on a mixed note at the opening on Thursday, while European stock markets are in disarray at mid-session, investors positioning themselves for the publication of CPI inflation in the States -United at 1:30 p.m. GMT.
Futures on New York indices suggest an opening on Wall Street without a marked direction, the Dow Jones and the Standard & Poor’s 500 being uncertain, and the Nasdaq expected to rise by 0.3%.
In Paris, the CAC 40 hesitates at 7,429.48 points around 10:55 GMT, like the FTSE in London. The Dax in Frankfurt gains 0.2%.
The pan-European FTSEurofirst 300 index rose by 0.19%, compared to 0.17% for the EuroStoxx 50 and 0.12% for the Stoxx 600.
CPI inflation in the United States expected later today is the main indicator this week, with economists expecting an increase of 0.2% over one month and 3.2% over one year, after respectively +0, 1% and +3.1% the previous month.
The scenario favored by investors of a significant rate cut by the Federal Reserve in 2024 and a slowdown in inflation without a turnaround in growth was shaken by the publication of the monthly employment report for December, which showed that the job market remained strong last month.
An upward surprise on inflation could therefore force markets to reassess their outlook for the path of rates. Conversely, a downward surprise could encourage investors to position themselves even more aggressively on an easing of American monetary policy.
Six rate cuts are currently priced into money markets.
New jobless claims in the United States will also be published at 1:30 p.m. GMT.
VALUES TO FOLLOW IN WALL STREET
Citigroup booked about $3.8 billion in combined charges and provisions that will weigh on its fourth-quarter results, scheduled to be reported Friday, according to a regulatory filing.
Cryptoasset-related stocks like Coinbase Global, Riot Platforms and Marathon Digital gain 4.4% to 6% pre-open, after the SEC cleared the launch of Bitcoin-backed ETFs.
VALUES TO FOLLOW IN EUROPE
Teleperformance increased by 6.91%, at the top of the Stoxx 600, after Exane BNP Paribas resumed monitoring of the value with an “outperformance” recommendation.
Tesco raised its annual profit forecast on Thursday for the second time in four months but fell by 0.44%.
Marks & Spencer reported an 8.1% rise in like-for-like sales over the Christmas period on Thursday, above expectations, but fell 5.62% after saying it was cautious about to pressure from higher-than-expected inflation in wages and tax rates.
Rational climbs 6.84%, as the industrial kitchen retailer’s preliminary results exceeded market expectations.
RATE
Yields are down slightly in a wait-and-see context before the publication of CPI inflation.
The yield on the ten-year Treasury lost 3.8 bps to 3.9923%, while the two-year fell by 3 bps to 4.3414%.
The German ten-year yield weakened by 3.5 bp to 2.178%, that of the two-year rate was stable at 2.643%.
CHANGES
The dollar is stable against a basket of reference currencies, the euro loses 0.06% to 1.0964 dollars, and the pound sterling is immobile at 1.2742 dollars.
Bitcoin rose 1.92% to $46,818 after the SEC decision.
OIL
The collision of an oil tanker in Oman supports oil prices as investors worry about escalating tensions in the Middle East.
Brent rose 1.51% to $77.96 per barrel and American light crude (West Texas Intermediate, WTI) gained 1.56% to $72.48.
(Written by Corentin Chappron, edited by Blandine Hénault)
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