PARIS (Reuters) – The main European stock markets are expected to be stable at the opening on Tuesday amid cautious trading ahead of the release of U.S. retail sales data and the backdrop of a slowing Chinese economy.

The first indications available indicate that the Parisian CAC 40 would be stable at the opening, like the FTSE in London and the Dax in Frankfurt. Conversely, the EuroStoxx 50 gained 0.14%.

U.S. retail sales and industrial production data, due on Tuesday, will provide a gauge of the resilience of the U.S. economy as the Federal Reserve prepares for its final meeting of the summer, which will take place July 26.

Investors are beginning to bet on a divergence between European and American monetary policy, the European Central Bank being able to continue to raise its rates after the summer, while the markets anticipate that the Fed will end its rate hike cycle at the end of July.

The quarterly earnings season, which began last week and will intensify this week, also urges investors to be cautious.

The slowdown in activity in China, confirmed by the release of data on Monday, is also weighing on sentiment.


Wall Street ended in the green on Tuesday, supported by the financial and technology sector, while many quarterly results of companies are due for publication this week.

The Dow Jones index rose 0.22% to 34,585.35 points, the S&P 500 gained 0.39% to 4,522.79 points, while the Nasdaq Composite advanced 0.93% to 14,244.95 points.


In Tokyo, the Japanese indices rose, supported by the semiconductor and banking sectors, but remaining under pressure from weaker than expected Chinese activity data published yesterday. The Nikkei nibbles 0.08% to 32,418.25 points, while the Topix advances by 0.46% to 2,249.36 points.

Chinese indices are falling as a series of economic data released on Monday confirmed that growth remained weak in the second quarter. The Shanghai SSE Composite lost 0.05%, the CSI 300 stagnated and the Hong Kong Hang Seng index fell 1.84%.

This poor performance weighed on all of the Asian equity indices, with the LMSCI Asia-Pacific excluding Japan index falling by 0.63% during the session.


A possible divergence between US and European monetary policies weighed on the dollar, with market expectations showing that the Fed could hike rates one last time in July, while the ECB and Bank of England could continue to tighten their policies. money after the summer.

The greenback fell 0.14% against a basket of benchmark currencies, near its lowest level in one year, while the euro rose 0.20% to $1.1257, its highest since February. 2022.

The pound rose 0.21% to $1.3098.

The yen strengthens 0.27% ahead of the Bank of Japan’s monetary policy meeting next week, while the Bank of Australia’s hawkish minutes supported the Australian dollar, up 0 .19% to 0.6829 dollars.


US fixed income markets remain stable pending the release of retail sales data.

The ten-year Treasury yield stagnated at 3.7912%, while the two-year rate held steady at 4.7149%.


The oil market rose slightly as Russia released figures on Monday indicating that its exports would decline in the second half of the year, in line with its decision to cut production.

Brent nibbles 0.33% to 78.76 dollars a barrel, US light crude (West Texas Intermediate, WTI) advancing 0.38% to 74.43 dollars.

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