by Claude Chendjou

PARIS (Reuters) – The main European stock markets are expected to rise slightly on Wednesday at the opening for the first session of March after a turbulent month of February, marked by concerns about inflation and interest rates.

The positive trend should be supported by news from China: official data shows Chinese manufacturing activity grew at the fastest pace since April 2012, with the PMI reading at 52.6 in February from 50.1.

According to another study, that of Caixin/Markit, manufacturing activity in China increased in February for the first time in seven months, with an index at 51.6, against 49.2 in January.

According to the first indications available, the CAC 40 in Paris should gain 0.15% at the opening, the Dax in Frankfurt could grab 0.06% and the FTSE 100 in London advance by 0.31%. The EuroStoxx 50 index is expected to rise by 0.02%.

After the data published on Tuesday showing an unexpected acceleration of inflation in France (+7.2% over one year) and in Spain (+6.1% over one year) for the month of February, investors will take note this Wednesday preliminary figures on the subject for Germany. The Reuters consensus forecasts a slowdown in consumer prices in Europe’s largest economy to 9.0% over one year after +9.2% the previous month.

The PMI manufacturing indices in France and Germany, Great Britain and the euro zone, as well as the ISM manufacturing index in the United States, are also expected. They should provide new indications on the evolution of activity as central banks seek to rein in demand to curb inflation.

As for corporate publications, the season continues this Wednesday with Atos, Beiersdorf, Just Eat Takeaway, Puma, Lowe’s and Salesforce.

VALUES TO FOLLOW:

Atos reported on Tuesday a growth in its turnover in 2022, driven by the progress of its Evidian branch and the first positive results of the transformation plan for Tech Foundations.

AT WALL STREET

The New York Stock Exchange ended lower on Tuesday and recorded a decline for the whole of February, as investors continued to question the assumption that the US Federal Reserve (Fed) would hold interest rates raised longer than expected.

The Dow Jones index fell 0.71%, or 232.39 points, to 32,656.70 points.

The broader S&P-500 fell 12.09 points, or 0.30%, to 3,970.15 points.

The Nasdaq Composite fell for its part by 11.44 points (0.10%) to 11,455.54 points.

Values, Target rose 1.01% after reporting an unexpected increase in sales in the fourth quarter.

Meta Platforms jumped 3.19% following the announcement of work on a generative artificial intelligence product.

IN ASIA

At the Tokyo Stock Exchange, the Nikkei index ended with a gain of 0.26% to 27,516.53 points and the broader Topix rose 0.23% to 1,997.81 points.

In China, the Shanghai SSE Composite gained 1% and the CSI 300 gained 1.41%.

CHANGES

The dollar fell 0.25% on Wednesday against a basket of benchmark currencies after Chinese PMI data warded off risk aversion.

The euro, up 0.32%, is trading at 1.061 dollars.

RATE

Yields on ten-year and two-year US Treasuries are up around three basis points, to 3.94%, and four points, to 4.83%, respectively, still on fears of a prolonged rise in prices. Fed interest rate.

The ten-year and two-year German Bund yields are respectively 2.66% (+2.8 points) and 3.16% (+3.7 points).

OIL

The oil market is supported by improving Chinese PMIs on the hope of a jump in demand, Beijing being the world’s largest importer of crude: Brent rises 0.78% to $84.10 a barrel and crude American light (West Texas Intermediate, WTI) 0.80% to 77.67 dollars.

(Written by Claude Chendjou, edited by Kate Entringer)

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