by Laetitia Volga
PARIS (Reuters) – The main European stock markets are expected to open slightly higher on Tuesday pending further clarification on the economic and monetary situation.
The first indications available suggest a gain of 0.22% for the Parisian CAC 40, 0.31% for the Dax in Frankfurt, 0.38% for the FTSE in London and 0.3% for the EuroStoxx 50.
While the consequences of the aborted mutiny of the paramilitary group Wagner on Saturday in Russia continue to fuel reflections, the reaction of the financial markets has remained measured.
Investors focus on the usual market catalysts, namely the economy and monetary policy. On this front, they will be attentive to the declarations of the leaders of the major central banks of the world, gathered until Wednesday in Sintra, in Portugal, for the annual forum organized by the European Central Bank (ECB).
The publication of numerous economic data, including Friday the US PCE price index, the inflation measure favored by the Federal Reserve, and the first estimate of consumer prices in the euro zone, will also be closely watched.
AT WALL STREET
The New York Stock Exchange ended lower on Monday as investors appeared risk averse amid the situation in Russia and the possibility of further Fed rate hikes.
The Dow Jones index fell 0.04%, or 12.72 points, to 33,714.71 points, the S&P-500 lost 19.51 points, or 0.45%, to 4,328.82 points and the Nasdaq Composite fell 156.74 points (-1.16%) to 13,335.78 points.
In values, Pfizer fell 3.68% after announcing the halt of development of a drug against obesity and diabetes due to inconclusive clinical studies.
Alphabet, the parent company of Google (-3.26%), and Tesla (-6.06%) were heavily penalized by changes in recommendations, dragging the Nasdaq in their fall.
IN ASIA
The Nikkei, still under the influence of profit taking, fell 0.6% in Tokyo.
The Chinese market is progressing, supported by real estate values. The CSI 300 index advanced by 0.7% and the Shanghai SSE Composite by 1.05%.
EXCHANGES/RATES
On the currency market, the dollar is losing ground against a basket of reference currencies. The euro rose slightly to 1.0922 dollar.
Yields on US government bonds rose again, by nearly two basis points for the two-year to 4.6953% and to 3.7348% for the ten-year.
OIL
The risk of political instability in Russia, which could lead to oil supply problems, benefits the crude market. Brent gained 0.67% to 74.68 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.76% to 69.9 dollars.
(Edited by Nicolas Delame)
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