by Claude Chendjou

PARIS (Reuters) – Wall Street is expected to rise on Tuesday and European stocks are also trading in the green mid-session amid risk appetite with the ebbing dollar and new data showing a slowdown in inflationary pressures in eurozone.

Futures on New York indices signal an opening on Wall Street up 0.21% for the Dow Jones, 0.34% for the Standard & Poor’s 500 and 0.41% for the Nasdaq.

In Paris, the CAC 40 gained 0.64% to 7,393.16 points around 11:10 a.m. GMT, while the Parisian index approached its historic record at 7,399.59 points, established at 7,401.15 points on March 6. In Frankfurt, the Dax took 0.95% to 15,729.13 points, after hitting a high since the start of the year at 15,736.56 points. In London, the FTSE gained 0.06%, down from other financial markets due to the decline in oil stocks after the sharp rise the day before.

The pan-European FTSEurofirst 300 index gains 0.69%, the EuroStoxx 50 of the euro zone 0.76% and the Stoxx 600 0.65%.

After data last week showing a slowdown in the PCE price index in the United States, the preferred measure of inflation by the United States Federal Reserve (Fed), the indicator of producer prices in the euro zone, published this Tuesday, shows him a decline of 0.5% monthly in February.

A European Central Bank (ECB) survey further shows that consumers in the eurozone are now more optimistic about the outlook for inflation, economic growth and unemployment in the currency bloc.

The sharp rise in oil prices, linked to the decision by OPEC+ to cut production, is however limiting gains on stock market indices and leading to some volatility, with a surge in black gold likely to revive inflation and to call into question the scenario of a lull in central bank rates.

“The surprise OPEC+ production cut continues to stoke inflation concerns, with Brent trading above $85 a barrel,” Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said in a note.

WALL STREET VALUES TO FOLLOW

Virgin Orbit loses 18% in the forefront, the satellite launch company of British businessman Richard Branson having placed itself under the protection of American bankruptcy law.

VALUES IN EUROPE

On the stock market, the real estate compartment (+1.46%), sensitive to changes in interest rates, recorded one of the best performances of the Stoxx 600 with in particular Unibail-Rodamco-Westfield (+1.48 %) and Icade (+1.71%).

The oil and gas sector (-0.02%) suffered from profit taking, with in particular a decline in TotalEnergies (-0.56%).

The banking index (+1.08%) continues to recover after the crisis linked in particular to Credit Suisse (+1.34%) which brought together angry shareholders on Tuesday for the last general meeting of the bank, bought by its rival UBS (+1.12%).

BNP Paribas (+1.64%) is in the top three of the CAC 40 with Renault, which advances by 2.55%, while the European automobile index takes 1.29%. In Milan, Stellantis shares gained 0.68%, the car manufacturer having reaffirmed its ambition to become the European leader in rental with in particular a fleet of one million vehicles by 2026.

In other corporate news, L’Oréal gains 0.90% after buying Aēsop from Brazil’s Natura for $2.52 billion, while Bayer advances 0.44% after favorable court ruling on talc against Merck & Co.

CHANGES

The euro touched a two-month high against the dollar at .0938 on Tuesday and the pound a 10-month high against the dollar at .2475 on Tuesday, as the greenback continued to suffer from the prospect of an imminent end. of the Fed’s monetary tightening cycle.

The dollar index measuring the fluctuations of the American currency against a basket of reference currencies lost 0.18%, the day after the publication of the monthly ISM manufacturing statistics, which fell to 46.3, its lowest level. for almost three years.

The Australian dollar is trading at 0.6751 US dollar after losing up to 0.46% in session in reaction to the Australian central bank’s decision to leave its main rate unchanged at 3.6% after ten consecutive increases.

RATE

Short-term bond yields rose slightly in Europe and the United States. That of the two-year German Bund has however lost 70 basis points since its peak in March and is displayed at 2.706% at mid-session.

The yield on the two-year Treasuries is trading at 4.0049% pending the 1400 GMT release of the “Jolts” statistic on Labor Department job openings and durable goods orders in the United States. United.

OIL

Oil prices, which jumped more than 6% on Monday after announcements by OPEC and its allies, are still rising, some analysts like Fereidun Fesharaki of the consulting firm FGE, believing that they could easily exceed $100 a barrel.

Brent rose 0.85% to 85.65 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.9% to 81.14 dollars.

(Written by Claude Chendjou, edited by Kate Entringer)

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