PARIS (Reuters) – The main European stock markets are expected to rise on Wednesday at the opening, in a context of cautious exchanges ahead of the publication of several American economic indicators on Wednesday and Thursday.

Futures contracts suggest an opening of the Parisian CAC 40 up by 0.37%, while the FTSE in London is given up by 0.24%, the Dax in Frankfurt by 0.45% and the EuroStoxx 50 by 0.49%.

Markets will hold their breath until the release of US inflation data at 12:30 GMT, with core inflation expected to fall to 5.0% year on year in June from 5.3% in May.

Jobless claims and producer prices are expected on Thursday and the first quarterly results of companies, at the end of the week, will make it possible to gauge the resistance of American activity.

“With a probability of an American recession still very complicated to assess, a marked geographical divergence and the start of the results season on Friday (…) a certain wait-and-see attitude is probably not unreasonable” until then on the markets, note Natixis strategists.

VALUES TO FOLLOW:

AT WALL STREET

Wall Street ended in the green on Tuesday, supported by the financial sector, investors positioning themselves awaiting inflation data and the first quarterly results of companies.

The Dow Jones index rose 0.93% to 34,261.42 points, the S&P 500 gained 0.67% to 4,439.26 points, while the Nasdaq Composite advanced 0.55% to 13,760.70 points. .

IN ASIA

In Tokyo, the Nikkei retreated under pressure from a stronger yen which is weighing on the competitiveness of Japanese exporters. The index lost 0.81% to 31,943.93 points and the broader Topix fell 0.65% to 2,221.93 points.

Chinese indices are moving in mixed order, supported by better-than-expected new bank lending figures as central bank support for the economy remains limited. Shanghai’s SSE Composite lost 0.13%, the CSI 300 stalled and the Hong Kong Hang Seng index gained 1.15%.

CHANGES

The release of US economic data on Wednesday and throughout the week weighed on the dollar which crumbled against most other currencies.

The greenback fell (-0.33%) against a basket of reference currencies, while the euro rose to 1.0893 dollars (+0.22%), like the pound sterling which advanced to 1, $2,961 (+0.22%).

The yen strengthened significantly, by 0.61%, touching its strongest level over a month at 139.51 yen for a dollar, like the Australian dollar, up 0.40% to 0.6713 dollar.

RATE

US rates markets remain on hold ahead of the release of inflation data that will help determine the path of the Federal Reserve’s key rates.

The ten-year US Treasury yield erodes to 3.9543%, down 2.8 basis points to its lowest level since last Thursday, while the two-year yield falls 4 bps to 4 .8581%.

European markets are also cautious, with the ten-year German Bund rate losing 2.2 bp, to 2.6270%, while the two-year yields 1.6 bp, to 3.3480%.

OIL

Caution is spreading to the oil markets, which are falling slightly pending inflation data.

Brent fell 0.10% to 79.32 dollars a barrel and US light crude (West Texas Intermediate, WTI) eroded 0.11% to 74.75 dollars.

(edited by Bertrand Boucey and Kate Entringer)

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