by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to fall slightly on Tuesday and European stock markets also fell mid-session for the second consecutive session, in a context of questions about the evolution of the economy and interest rates.
Futures on New York indices signal an opening on Wall Street down 0.12% for the Dow Jones, 0.1% for the Standard & Poor’s 500 and 0.08% for the Nasdaq.
In Paris, the CAC 40 dropped 0.21% to 7,185.89 points around 11:20 GMT. In Frankfurt, the Dax lost 0.19% and in London, the FTSE fell by 0.33%.
The pan-European FTSEurofirst 300 index fell by 0.05%, the EuroStoxx 50 of the euro zone by 0.31% and the Stoxx 600 by 0.02%.
The latest macroeconomic indicators offer a contrasting reading with, in particular, a slowdown in wage pressures in the United States, but a virtual recession in the manufacturing sector worldwide and a deceleration in services in Europe and the United States.
The Institute for Supply Management (ISM) monthly survey, published on Monday, showed that growth in service sector activity in the United States slowed in May to 50.3 from 51.9 the month previous.
While this slowdown in the economy is likely to be welcomed by the US Federal Reserve (Fed) and the Central Bank (ECB), which will hold their respective monetary policy meetings next week, it also raises fears of a sharp recession.
Especially as uncertainty remains on the trajectory of interest rates, the RBA, Australia’s central bank, having surprised the market on Tuesday with the increase in its key rate to 4.1% while a break was expected.
WALL STREET VALUES TO FOLLOW
Apple fell 0.5% in pre-market trading, DA Davidson having lowered its advice to “neutral” the day after the opening of the brand’s global developer conference during which the Californian group presented a new headset. mixed reality at $3,499, entering a market dominated by Meta.
VALUES IN EUROPE
In Europe, the increase is mainly driven by the defensive health sector (+1.14%) with in particular Novo Nordisk which jumped by 3.76%. The Danish pharmaceutical group has announced that it is in negotiations for the takeover of the French designer of medical devices Biocorp, whose share price has soared by 15.70%.
Monte dei Paschi took 4.31% following information that the bank might be interested in a merger with BPER Banca (-1.24%).
On the downside, the oil and gas compartment (-1.77%), which had benefited the day before the announcement of a drop in production in July from Saudi Arabia, fell back into the red.
TotalEnergies, the biggest drop in the CAC 40, dropped 2.04%. In London, Shell lost 2.60% as the group announced on Tuesday that it was withdrawing from energy retail businesses in Britain, Germany and the Netherlands due to their poor returns.
RATE
The ten-year German Bund yield, a benchmark for the eurozone as a whole, fell nearly four basis points to 2.332% after a survey by the European Central Bank (ECB) showed on Tuesday that inflation expectations of consumers in the block fell further in April for the next 12 months and the next three years.
In the United States, the yield on ten-year Treasuries fell around two basis points, to 3.6697%. Money markets continue to expect a pause in Fed rates this month, but do not rule out a hike next month.
CHANGES
The dollar rose 0.1% against a benchmark basket, approaching its peak of two and a half months, hit at the end of May at 104.70 points.
The euro fell 0.24% to 1.0686 dollars.
The Australian dollar advanced 0.6% after the RBA’s surprise decision on its key rate, now at its highest in 11 years.
In cryptocurrencies, bitcoin stabilized at 25,727 dollars (-0.05%) after falling 5% on Monday, the Binance crypto-asset exchange platform being targeted by the SEC, the American stock market policeman.
OIL
Oil prices are giving up much of their gains from the day before, the effects of the announcement of a further cut in Saudi Arabia’s production fading as fears over the economy take over.
Brent fell 2.37% to 74.89 dollars a barrel and US light crude (West Texas Intermediate, WTI) 2.49% to 70.35 dollars.
NO MORE MAJOR ECONOMIC INDICATOR ON TODAY’S AGENDA
(Written by Claude Chendjou, edited by Blandine Hénault)
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I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
