PARIS (Reuters) – The main European stock markets are expected to fall slightly on Tuesday at the opening before important meetings in the coming days on the front of corporate results, macroeconomic indicators and central banks.

The first indications available suggest a decline of 0.27% for the Paris CAC 40, 0.21% for the Dax in Frankfurt, 0.32% for the FTSE in London and 0.28% for the EuroStoxx 50 .

Monday’s session was already marked by a pause in equity markets, which hit multi-month highs last week.

The publication of the results of major listed companies, in particular the American tech giants, will drive the trend in the coming days, as will the first estimate of GDP in the United States and in the euro zone in the first quarter or the index of PCE price, closely followed by the Federal Reserve.

“There are strong concerns about earnings and forecasts, the possibility that the Fed will continue to raise interest rates, and the possibility that the US economy will slow down and head into a recession,” Riley summed up. Wealth in a note.

According to the FedWatch barometer, traders estimate that the probability of the Fed raising rates by a quarter point at its meeting on May 2-3 is more than 85%.

Many observers believe that the European Central Bank will do the same next week, although the possibility of a 50 basis point hike cannot be ruled out. This is what Isabel Schnabel, member of the Executive Board of the ECB, told Politico.

Also speaking to the press on Monday, Banque de France Governor Francois Villeroy de Galhau said further rate hikes were possible but that these should be limited, including “in size”.

VALUES TO FOLLOW:

AT WALL STREET

The New York Stock Exchange ended in mixed order on Monday, with Nasdaq hampered by forecasts from Tesla and several new technology giants before the publication this week of their results and economic indicators which could influence the decisions of the Fed next week.

The Dow Jones index gained 0.2% to 33,875.4 points, the S&P-500 gained 0.08% to 4,137.04 points and the Nasdaq Composite fell 0.29% to 12,037.20 points.

The earnings season will really begin this Tuesday for the high-tech sector, with the quarterly accounts of Alphabet and Microsoft expected in the evening. Those of Meta Platforms will be published on Wednesday and those of Amazon and Intel on Thursday.

These American giants represent more than 14% of the value of S&P-500 companies. A rally in these securities has supported Wall Street since the start of the year and investors are looking to determine whether the upturn can continue based on the forecasts that these groups will publish.

Tesla fell 1.53% after the automaker raised its 2023 capital spending forecast to boost production.

IN ASIA

The Nikkei (+0.16%) on the Tokyo Stock Exchange hit its highest since August, driven by values ​​linked to electronics.

Mitsubishi Electric gains 3.74% after announcing the split of its car audio business. The manufacturer of electric motors Nidec is up 2.26% thanks to an encouraging annual profit forecast.

Mainland China’s large-cap CSI 300 index fell 0.88% and Shanghai’s SSE Composite 0.78% down for the fifth straight session as data released last week depicted an uneven economic recovery in the country. .

RATES/EXCHANGES

The yield on ten-year US Treasury bonds continues to fall and is below 3.5%.

The dollar was unchanged against a basket of major currencies, including the euro, at 1.1045.

OIL

The oil market is stable as investors weigh hopes for Chinese demand against the prospect of interest rate hikes around the world, which would slow economic growth.

Brent climbed 0.04% to 82.7 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.03% to 78.74 dollars.

NO MAJOR ECONOMIC INDICATOR ON THE APRIL 25 AGENDA

(Laetitia Volga, edited by Bertrand Boucey)

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