by CORENTIN CHAPRON
PARIS (Reuters) – Wall Street is expected to rise at the opening on Wednesday, while the European stock markets advance at mid-session, the markets welcoming the latest results of the Jolts survey in the United States, but remaining cautious before the publication of other indicators this week.
Futures on New York indices suggest Wall Street opening in the green, with the Dow Jones nibbling 0.10%, while the Standard & Poor’s 500 takes 0.20% and the Nasdaq 0.26%.
In Paris, the CAC 40 rose 0.46% to 7,421.2 points around 11:59 GMT, compared to an increase of 0.42% for the FTSE in London. The Dax in Frankfurt rose by 0.34%.
The pan-European FTSEurofirst 300 index gained 0.32%, compared to a gain of 0.46% for the EuroStoxx 50 and 0.40% for the Stoxx 600.
Markets welcome the latest Job Openings and Labor Turnover Survey (JOLTS) report from the US Department of Labor, which showed on Tuesday that the number of job openings fell in October to its lowest level since early 2021.
The strength of the labor market has been a major factor in persistent inflation, and their slowdown is encouraging investors to bet that the Federal Reserve is done with rate hikes.
“Employment demand from businesses is normalizing while the number of job seekers increases, which indicates a rebalancing of the job market from an overheating situation since Covid,” summarize the LBPAM strategists.
“On the other hand, the slowdown in the job market increases the risks of a sharp economic slowdown in the coming months.”
Furthermore, the latest retail sales figures in the euro zone, published on Wednesday, were generally in line with the consensus.
Several indicators could liven up the markets on Wednesday and this week, before the Federal Reserve’s next monetary policy meeting on December 13.
The ADP survey on private employment in the United States will be released on Wednesday at 1:15 p.m. GMT, third-quarter European GDP and first jobless claims in the United States will be released on Thursday, and the department’s monthly employment report of Labor, essential to understanding the economic trajectory in the United States, is scheduled for Friday.
VALUES TO FOLLOW IN WALL STREET
Mastercard said Tuesday its board approved a new stock repurchase program of up to $11 billion.
Nvidia will develop a new series of products that comply with US government regulations and can be exported to China, the group said on Wednesday.
VALUES TO FOLLOW IN EUROPE
Renault gained 3.21%, leading the CAC 40, Nissan having confirmed its strategic investment in the French manufacturer’s Ampère electric vehicle division. The Japanese group also said it was considering taking a stake in Renault’s circular economy business.
TUI jumped 9.86%, leading the Stoxx 600, with the leading European tour operator anticipating a 25% jump in operating profit this year.
British American Tobacco fell 7.18% due to a writedown of around 25 billion pounds on some of its cigarette brands in the United States.
Merck fell 12.32%, at the bottom of the Stoxx 600, its experimental treatment against multiple sclerosis having failed to achieve its main objective during clinical trials.
Basic resources posted the best sectoral performance of the Stoxx 600, up 1.54%, as metal prices rebounded.
RATE
Yields are up slightly in a wait-and-see context ahead of the ADP employment survey.
The yield on the ten-year Treasury rose 2.6 bp to 4.1972%, while the two-year rose 4.5 bp to 4.622%.
The yield on the German ten-year rate is up 2.3 bp to 2.261%, that of the two-year rate is stable at 2.615%.
CHANGES
Foreign exchange markets are sluggish before the publication of several indicators this week.
The dollar is standing still against a basket of reference currencies, the euro is down 0.16% at $1.0778, and the pound sterling is holding steady at $1.2587.
OIL
Crude is falling, even though Saudi Arabia and Russia reiterated this week that the production cuts decided during the last OPEC+ meeting could be maintained beyond the first quarter of 2024.
Brent fell by 1.04% to $76.4 per barrel and American light crude (West Texas Intermediate, WTI) fell by 1.05% to $71.56.
MAIN ECONOMIC INDICATOR ON THE AGENDA OF DECEMBER 6
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
USA 1:15 p.m. Private employment (ADP survey) November 130,000 113,000
(Written by Corentin Chappron, edited by Blandine Hénault)
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