PARIS (Reuters) – The main European stock markets are expected to be unchanged at the opening on Tuesday, a few hours before the publication of inflation figures in the United States

The first indications available give an increase of 0.1% for the CAC 40 in Paris, 0.13% for the FTSE in London and a drop of 0.02% for the Dax in Frankfurt.

The big event of the week will be the publication, at 1.30 p.m. GMT, of the monthly consumer price statistics (CPI) in the United States.

The index is expected to rise by 0.5% in January compared to the previous month, which would mark an acceleration after the rise of 0.1% in December, and its increase in annual rate should return to 6.2% after 6.5% according to the Reuters consensus.

The statistics will obviously be analyzed to assess the extent to which the Federal Reserve’s policy tightening is helping to control inflation.

“If the numbers come in above expectations, traders will think it’s less of a one-time event and more of a trend, which could have a more pronounced impact on terminal rate expectations,” he said. declared SPI Asset Management.

The market expects US rates to peak around 5.2% in July and end the year at 4.9%.

AT WALL STREET

The New York Stock Exchange ended up Monday in a context yet tinged with a wait-and-see attitude before the inflation figures.

The Dow Jones index gained 1.11%, or 376.66 points, to 34,245.93 points, the Standard & Poor’s 500 gained 46.83 points, or 1.14% to 4,137.29 points and the Nasdaq Composite advanced 173.67 points (1.48%) to 11,891.789.

The trend was also supported by large cap tech stocks which helped the Nasdaq outperform.

Meta, Facebook’s parent company, gained 3.03% as investors welcomed Sunday’s publication of a Financial Times article reporting further job cuts.

IN ASIA

The Nikkei, erasing its losses the day before, gained 0.64% in anticipation of consumer prices in the United States.

Japan’s economy returned to growth territory in the October-December period (+0.6% annualized) after contracting in the previous quarter, government data show, signaling that the country is finally recovering from the aftermath caused by the health crisis.

Chinese markets are trading in the red as US-China tensions continue to dampen appetite as hopes for the country’s economic recovery fade. The CSI 300 index lost 0.27%.

RATE

Yields on US Treasuries show a moderate drop ahead of US inflation figures: the ten-year yields two basis points below 3.7% and the two-year falls by the same amount, to 4.5095% .

CHANGES

The dollar accentuated its decline against a basket of major currencies (-0.17%) and the euro rose slightly, to 1.0736.

The yen took -0.34% against the greenback after the Japanese government appointed academic Kazuo Ueda as the next governor of the central bank, a surprise choice that fuels the hypothesis of a shift in monetary policy.

“(Kazuo) Ueda is likely going to focus on theory and empirical analysis to guide monetary policy,” said Naomi Muguruma, senior economist at Mitsubishi UFJ Morgan Stanley Securities. “I don’t think he will continue idly with a policy that hasn’t worked and whose side effects are mounting.”

OIL

The oil market is shrinking after the United States confirmed the upcoming sale of 26 million barrels of its strategic reserves, a decision mandated by Congress several years ago.

The selloff announced Monday will likely temporarily push U.S. reserves to their lowest since 1983.

Brent lost 0.44% to 86.23 dollars a barrel and US light crude (West Texas Intermediate, WTI) dropped 0.89% to 79.43 dollars.

(Written by Laetitia Volga, Editing by Kate Entringer)

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