by Laetitia Volga

PARIS (Reuters) – The main European stock markets are expected to rise timidly on Tuesday at the opening on the eve of consumer price figures in the United States.

The first available indications give an increase of 0.16% for the Parisian CAC 40, 0.17% for the Dax in Frankfurt, 0.33% for the FTSE in London and 0.18% for the EuroStoxx 50 .

Like Monday’s session, the day should be calm on the financial markets in the absence of major economic events.

The next test is set for Wednesday with the publication of monthly consumer price statistics in the United States, which could show inflation stagnating at 5% over one year according to the Reuters consensus.

Market attention is shifting to US President Joe Biden’s meeting earlier today with Republican leaders in Congress, including House Speaker Kevin McCarthy, to try to find a compromise on the debt and avoid a possible default of payment by the United States.

AT WALL STREET

The New York Stock Exchange ended in disarray on Monday after a session without clear direction during which investors digested the disappointing results of Tyson Foods (-16.4%) and Catalent (-25.74 %), keeping in mind above all the data on inflation in the United States due this week. [.NFR]

The Dow Jones index fell 0.17%, or 55.69 points, to 33,618.69 points, the S&P-500 gained 1.87 points, or 0.05%, to 4,138.12 points and the Nasdaq Composite advanced by 21.50 points (+0.18%) to 12,256.92 points.

Index futures suggest a flat session for now.

IN ASIA

The Nikkei on the Tokyo Stock Exchange advanced by 1.02%, supported by steel stocks and shipping companies after good results from companies in these sectors.

Chinese markets showed no reaction to April’s trade balance figures, although imports fell sharply (-7.9%).

The CSI 300 index gained 0.48% and the Shanghai SSE Composite 0.38%.

CHANGES

The dollar is stable as a Fed survey showed that while credit conditions for US businesses and households tightened in the first quarter, it was likely due to the impact of rate hikes rather than to serious strains in the banking sector.

“The survey hasn’t been as bad as expected. There’s still a tightening in credit conditions ahead…but at this stage it doesn’t point to a ‘credit crunch’,” said Rodrigo Catril, strategist at National Australia Bank.

The euro fell 0.14% to 1.0988 dollars.

RATE

Yields on US Treasury bonds are down slightly, below 3.5% for the ten-year and below the 4% threshold for the two-year.

OIL

The oil market is down slightly awaiting US inflation figures on Wednesday.

Brent fell 0.45% to $76.66 a barrel and US light crude (West Texas Intermediate, WTI) fell 0.44% to $72.84

(Laetitia Volga, edited by Bertrand Boucey)

Copyright © 2023 Thomson Reuters