by Claude Chendjou

PARIS (Reuters) – Wall Street is expected to fall and the European stock markets are also moving in the red at mid-session the day after the publication of the minutes of the last monetary policy meeting of the American Federal Reserve (Fed) which suggests to further interest rate hikes to come. New York index futures are signaling an opening down 0.48% for the Dow Jones, 0.49% for the Standard & Poor’s 500 and 0.47% for the Nasdaq. In Paris, the CAC 40 fell by 1.93% to 7,170 points around 12:00 GMT. In Frankfurt, the Dax dropped 1.23% and in London, the FTSE lost 1.27%.

The pan-European FTSEurofirst 300 index fell by 1.25%, the EuroStoxx 50 of the euro zone by 1.62% and the Stoxx 600 by 1.29%.

The “minutes” of the June 13-14 Fed monetary policy meeting showed that a large majority of US central bank officials expect further monetary tightening despite the June pause in interest rates. of interest.

On the economic side, while waiting for the official report on US employment scheduled for Friday, investors will learn at 12:15 GMT of the ADP employment survey and at 14:00 GMT of the ISM services index for the month of June .

Waiting for this new data calls for caution as the latest indicators have dampened hopes of an economy unresponsive to rising interest rates.

The geopolitical context is also weighing on the trend as US Treasury Secretary Janet Yellen arrived in Beijing on Thursday for a four-day visit intended to redefine relations between the world’s two leading economic powers. WALL STREET VALUES TO FOLLOW

Meta Platforms took 1.7% ahead of the stock market the day after the launch of Threads, an application intended to compete with Twitter and on which 10 million people have already registered according to the group.

Other tech groups like Alphabet and Tesla each lost 0.7% ahead of the market on the prospect of higher credit costs, with money markets pricing in an 85% chance of a Fed rate hike on the 26th. July.

VALUES IN EUROPE

In Paris, Publicis shares are volatile, losing 0.83% after gaining up to 5.4% following an article by Challenges evoking a possible interest from Vincent Bolloré for the advertising group, according to a trader based in Paris.

Embracer fell 11.49%, marking the biggest drop in the Stoxx 600, after the announcement of a fundraising of two billion crowns (168 million euros) as part of a share issue at reduced price.

RATE/EXCHANGE

The yield on ten-year US Treasuries took more than two basis points to 3.9694%.

That of its German equivalent gains six points, 2.542%.

In the UK, the two-year Gilt yield hit a 15-year high of 5.46% amid persistent inflation as the Bank of England (BoE) insists on its desire to continue its monetary tightening.

OIL

The oil market is broadly stable as investors digest the prospect of tighter crude supply alongside fears of a global economic slowdown.

Brent gained 0.27% to 76.86 dollars a barrel and American light crude (West Texas Intermediate, WTI) took 0.39% to 72.07 dollars.

(Written by Claude Chendjou, edited by Blandine Hénault)

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