by Laetitia Volga

PARIS (Reuters) – Wall Street is expected to fall slightly on Wednesday, still affected by concerns over the Federal Reserve’s monetary policy, while European stocks gained ground at mid-session, thanks to good results from businesses. The “futures” on the New York indices signal an opening down from 0.09% to 0.19%.

The major US indices ended in scattered order on Tuesday after the announcement of a weaker than expected deceleration in consumer prices in the United States, the rise in the CPI index having fallen to 6.4% in January.

For most investors, the data and the still aggressive rhetoric from Fed officials argue for continued monetary tightening and a higher-than-expected “terminal” rate.

For money markets, the federal funds rate target should peak around 5.3% in July, versus 4.50%-4.75% currently.

Investors will now focus on the impact of last month’s price hike on retail sales (1330 GMT) and industrial production (1415 GMT). In Paris, the CAC 40 gained 1.35% to 7,311.3 around 12:25 GMT. In Frankfurt, the Dax takes 0.64% and in London, the FTSE grabs only 0.07%, weighed down by the fall of Barclays (-9.73%), which published an annual profit below expectations.

The pan-European FTSEurofirst 300 index advanced by 0.19%, the EuroStoxx 50 of the euro zone by 0.89% and the Stoxx 600 by 0.3%. WALL STREET VALUES TO FOLLOW

VALUES IN EUROPE

Among the strongest increases in the CAC 40, Kering is ahead by 4.19%, the owner of the Gucci and Saint Laurent brands having announced a “very encouraging” start to the year in China after the end of its “zero -Covid”.

In its wake, LVMH gained 2.31%. The world leader in the luxury industry has also announced the appointment of singer Pharrell Williams as head of artistic direction for Louis Vuitton’s men’s collections.

The large distribution groups Carrefour and Ahold Delhaize climbed by 8.28% and 5.90% respectively after the publication of solid results.

CHANGES

The dollar is on the rise against a basket of six major currencies (+0.32%), with a majority of traders betting on a higher final rate from the Fed as inflation remains high in the United States.

The euro thus fell to 1.0713 dollars (-0.2%). The pound is down more than 0.7% against the dollar and the euro, as Britain’s consumer price index rose less than expected in January, according to figures from the Office for National Statistics, which also show an easing of inflationary pressures in services, a parameter closely monitored by the Bank of England.

RATES Benchmark bond yields for the euro zone and the United States fell slightly after hitting their highest level in six weeks the previous day in reaction to the figures on US inflation.

The ten-year German fell to 2.432% and the ten-year American fell below 3.75%.

OIL

Oil prices are in the red after the latest figures from the American Petroleum Institute (API) showing, according to market sources, an increase in inventories in the United States.

Official data from the US Energy Information Administration (EIA) will be released at 15:30 GMT.

Brent lost 0.42% to 85.22 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.58% to 78.6 dollars.

MAIN ECONOMIC INDICATORS ON THE AGENDA FOR FEBRUARY 15:

COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS

USA 1:30 p.m. Retail sales January +1.8% -1.1%

USA 2:15 p.m. Industrial production January +0.5% -0.7%

(Laetitia Volga, edited by Blandine Hénault)

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