(News Bulletin 247) – Wall Street is expected to fall back on Wednesday at the opening pending the publication of the ISM manufacturing index, which could allay or on the contrary reinforce fears of recession in the United States.
Half an hour before the opening, futures on the major New York indices are down about 0.2%, suggesting a moderate decline at the start of the session.
With an earnings season now coming to an end, investors’ attention is focused on economic statistics, with the aim of getting a better idea of ​​the current state of the economy.
In this context, risk-taking should remain limited pending the publication, shortly after the opening, of the ISM index measuring activity in the American manufacturing industry.
The ISM manufacturing index, which has been hovering below the fateful 50-point mark for two months due to a drop in new orders, should have rebounded in February, without however returning to expansion territory.
Investors will also be very attentive to the price paid component, whose continued recovery would rekindle inflationary fears.
Since the statistics published last week, participants know that inflation figures stronger than expected can only be badly received by the markets in the sense that they are likely to comfort the Fed in its ultra-restrictive monetary policy.
As such, the uncertainties surrounding the evolution of US Federal Reserve rates are once again driving up the country’s bond yields.
The yield on ten-year government bonds rose above 3.95%, while the dollar confirmed its bout of weakness against the euro by returning to quote around 1.0670 against the single currency.
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