by Claude Chendjou

PARIS (Reuters) – The main European stock markets are expected in the green on Tuesday at the opening in the wake of the positive close on Wall Street the day before, investors showing confidence at the start of the two-day meeting of the Reserve federal (Fed) and before the monthly consumer price figures in the United States.

Futures contracts on indices suggest an increase of 0.49% for the CAC 40 in Paris, 0.63% for the Dax in Frankfurt, 0.40% for the FTSE 100 in London and 0.65% for the EuroStoxx 50.

The Fed will publish its monetary policy statement on Wednesday after two days of meetings, while those of the European Central Bank (ECB) and the Bank of Japan (BoJ) are expected respectively on Thursday and Friday before those next week. the Bank of England (BoE) and the Swiss National Bank (SNB).

Even if the central banks of Australia (RBA) and Canada (BoC) surprised last week by opting for a new monetary tightening, investors want to believe that the end of the rise in interest rates in the United States United is near.

“Equity markets overall reacted positively to expectations that the monetary policy cycle may be nearing its peak,” ANZ analysts said in a note.

This optimism, which carries high growth stocks and sectors sensitive to the economic situation, will however be put to the test of consumer price figures for May in the United States, scheduled for 12:30 GMT.

In Europe, Germany will publish at 06:00 GMT the final data on price developments in May before those for the whole of the euro zone scheduled for Friday. The ZEW index of investor sentiment this month in the currency bloc’s biggest economy is also expected after the sharper-than-expected deterioration recorded last month.

VALUES TO FOLLOW IN EUROPE: [L8N3843WH]

AT WALL STREET

The New York Stock Exchange ended higher on Monday, with the S&P-500 and Nasdaq ending at highs since April 2022.

The Dow Jones index gained 0.56% to 34,066.33 points.

The broader S&P-500 gained 0.93% to 4,338.93 points.

The Nasdaq Composite advanced for its part by 1.53% to 13,461.92 points.

As Oracle (+7%) stood at an all-time high ahead of its post-close quarterly earnings release, gains by tech giants including Amazon and Apple lifted the S&P-500 which rallied 21% of its losses last October.

Among the eleven main sectors of the S&P-500, eight ended the session in the green, the first of which was information technology.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index advanced 1.81% to 33,019.78 points and the Topix, larger, took 1.16% to 2,264.83 points as the closing approached.

The MSCI index comprising stocks from Asia and the Pacific (excluding Japan) gained 0.3%.

In China, the Shanghai SSE Composite dropped 0.05%, while the CSI 300 rose 0.28%.

EXCHANGES/RATES

The dollar fell (-0.20%) on Tuesday against a basket of benchmark currencies as the market assesses the probability of a status quo on rates in the United States at 80%.

The euro is displayed at 1.0791 dollar (+0.32%) after having reached a peak since May 24 at 1.0792 dollar.

The pound sterling is trading at 1.2532 dollars (+0.17%).

On the bond market, the yield on ten-year US Treasury bonds fell 3.5 basis points to 3.7299%.

OIL

The oil market is recovering but the gains are limited before the Fed’s decisions: Brent takes 0.71% to 72.35 dollars a barrel and American light crude (West Texas Intermediate, WTI) 0.54% to 67 $.48.

(Written by Claude Chendjou, edited by Tangi Salaün)

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