by Laetitia Volga
PARIS (Reuters) – Calm should prevail on Tuesday on the main European stock markets, investors awaiting developments in the negotiations in Washington on the raising of the American debt ceiling.
The first indications available indicate a drop of 0.08% for the CAC 40 in Paris, the Dax in Frankfurt and the FTSE in London.
After a sluggish day on Monday, today’s trend is expected to remain calm again as investors remain skeptical about the ability of US President Joe Biden and Republican leaders in Congress to find common ground on the cap. American debt.
A meeting at the highest level is scheduled for 7:00 p.m. GMT at the White House to try to avoid a possible default on June 1.
Meanwhile, fears of “stagflation” – the combination of weak growth and high inflation – resurfaced as the “Empire State” activity index fell 42.6 points, falling into contraction territory at – 31.8.
Another factor favoring risk aversion: China’s post-COVID recovery is losing momentum. Industrial production and retail sales accelerated last month but less than expected, official data showed.
VALUES TO FOLLOW IN EUROPE:
AT WALL STREET
The New York Stock Exchange finished higher on Monday but this remained limited due to signs of a slowing US economy and concerns over the debt ceiling.
The Dow Jones index gained 0.14% to 33,348.60 points, the Standard & Poor’s 500 gained 0.30% to 4,136.28 points and the Nasdaq Composite rose 0.66% to 12,365.209.
Among one of the biggest risers in the Nasdaq and S&P 500, Meta Platforms gained 2.2% after Loop Capital raised its recommendation to “buy” from “hold.”
IN ASIA
In Japan, the Nikkei (+0.78%) is at its highest since November 2021 and the Topix index (+0.49%) since August 1990, thanks among other things to the rise in values of the semiconductor sector in the wake of the Nasdaq.
In China, on the other hand, the main indices are relatively stable: the CSI 300 index lost 0.26% and the Shanghai SSE Composite 0.2%.
RATES/EXCHANGES
On the bond market, the yield on ten-year Treasuries fell by two basis points to 3.4869%.
The dollar is unchanged against other major currencies (-0.03%) and the euro, after a one-month low at 1.0843 on Monday, is back at 1.0876 dollars.
OIL
The oil market is rising, supported by the US government’s intentions to buy crude to replenish its strategic reserves and by wildfires in Canada which are fueling supply concerns.
Brent gained 0.33% to 75.48 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.32% to 71.34 dollars.
(Laetitia Volga, edited by Nicolas Delame)
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