by CORENTIN CHAPPRON

PARIS (Reuters) – Wall Street is expected to be stable on Tuesday, while European stock markets rose, encouraged by announcements of support for Chinese equity markets announced this weekend and before the publication in the coming days of key economic indicators.

New York index futures suggest a directionless opening on Wall Street, with the Dow Jones, Standard & Poor’s 500 and Nasdaq flat.

In Paris, the CAC 40 rose 0.50% to 7,361.14 points around 10:37 GMT, against a gain of 1.51% for the FTSE in London, which caught up with Monday’s session during which the British index was closed, and an increase of 0.57% for the Dax in Frankfurt.

The pan-European FTSEurofirst 300 index gains 0.69%, against 0.49% for the EuroStoxx 50 and 0.75% for the Stoxx 600. China announced on Sunday a set of measures intended to support its equity markets, which supported global stock markets on Monday.

However, the measures are targeted and are not large enough to relaunch a stalled growth dynamic, not to mention that China remains a source of volatility.

Developer Country Garden, which will report its half-year results on Wednesday, is seeking an extension to redeem one of its dollar bonds, while developer Evergrande remains under pressure and further economic relief measures are not forthcoming. are not a certainty.

“This morning’s session is a repeat of the day before, with the dollar retreating, (…) US yields down slightly and equities recovering, on hopes of support for the Chinese economy. “, writes Kit Juckes, Head of Forex Strategy at Societe Generale CIB.

“But what good is further monetary easing in China if debt levels are the main problem?”

In the United States, household confidence and job vacancies data are expected at 14:00 GMT, two figures that will help gauge the resistance of the US economy to rate hikes in July.

The rest of the week will remain loaded with indicators, with inflation in the eurozone and the United States on Thursday and the monthly US employment report on Friday.

VALUES IN EUROPE

Carrefour fell 3.45%, showing the largest drop in the CAC 40, while the group’s CEO, Alexandre Bompard, warned of a drop in consumption in France, in particular on basic necessities due to high prices. .

NN Group gained 9.08%, leading the Stoxx 600, the Dutch insurer having reported on Tuesday an improvement in its solvency ratio in the first half.

The basic resources sector posted the best performance of the Stoxx 600 (+1.82%), supported by the rise in copper prices on the prospect of support for demand in China.

RATE

Bond yields are moving calmly, with a wait-and-see attitude prevailing before the release of data on consumer confidence and employment, essential in determining monetary policy trajectories.

The ten-year German yield is treading water at 2.556%, while that of the two-year rate remains at 3.055%. The yield on the ten-year Treasury is stable at 4.2119%, against 5.0083% for the two-year.

CHANGES

The same calm observed on currencies, with traders positioning themselves ahead of the publication of many key indicators this week.

The dollar was stable against a basket of benchmark currencies, while the euro fell 0.08% to $1.0808 and the pound remained at $1.2602.

OIL

Crude prices are rising thanks to recent Chinese measures which raise hopes of broader support for the economy, while storm Idalia approaching Florida could have an impact on production in the Gulf of Mexico. Brent rose 0.75% to 85.05 dollars a barrel, US light crude (West Texas Intermediate, WTI) nibbling 0.7% to 80.66 dollars.

(Written by Corentin Chapron, edited by Blandine Hénault)

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