(Reuters) – The main European stock markets are expected to fall on Wednesday at the opening, after activity indicators still in contraction territory, which raised fears of a slowdown in economic activity in Europe and China.
Futures suggest an opening down 0.3% for the Paris CAC 40, against 0.46% for the FTSE in London, 0.24% for the Dax in Frankfurt, and 0.37% for the EuroStoxx 50.
In China, services activity grew at its slowest pace in eight months, Caixin data released on Tuesday showed, an indication that demand remains sluggish despite government stimulus efforts.
In Europe, the composite PMI and services indicators were also in contraction territory, signaling that activity was weakening under the effect of rate hikes. In Germany, in particular, the decline was greater than expected, prompting the Hamburg Commercial Bank, which carries out these surveys, to revise downwards its growth outlook for the largest economy in the euro zone in the third quarter.
“There are many signs that the European Central Bank’s rate hikes are having a tangible impact on credit and liquidity in the eurozone, but the precise impact is unclear as many businesses and households are benefited from low rates for years”, recall the economists of Rabobank.
“Rate turbulence can appear gradually or suddenly.”
AT WALL STREET
The New York Stock Exchange ended lower on Tuesday amid rising bond yields and oil prices as investors kept in mind the course of the Federal Reserve’s 15-member rate hike campaign. days of the US central bank meeting.
The Dow Jones index fell 0.56%, or 195.74 points, to 34,641.97 points, the broader S&P-500 fell 18.94 points, or 0.42%, to 4,496.83 points. , the Nasdaq Composite fell for its part by 10.86 points (0.08%) to 14,020.95 points.
IN ASIA
Japanese markets rise, supported by energy-related stocks as crude prices rise above $90. The Nikkei gained 0.62% to 33,241.02 points, the Topix gained 0.64% to 2,393.17 points.
Inpex posted the best performance of the energy-related groups, up 1.85%, while the oil and coal sector had one of the best performances of the index sectors, growing 1.85%. .16%.
The deteriorating outlook in China is causing local markets to hesitate. The Shanghai SSE Composite rose 0.14%, the CSI 300 lost 0.21%, and the Hong Kong Hang Seng index was stable%.
CHANGES
Growth concerns buoyed the dollar on Tuesday, which consolidated Wednesday near its 10-month high.
The dollar fell 0.12% against a basket of benchmark currencies, the euro 0.08% to 1.0729 dollars, while the pound sterling nibbled 0.11% to 1.2577 dollars.
In Asia, the yen rose 0.41% to 147.11 yen per dollar, while the Australian dollar rose 0.25% to 0.6393 dollars.
RATE
US rates fell after dovish comments from Fed Board of Governors member Christopher Waller, who said the latest economic indicators leave room for maneuver on rates.
The ten-year Treasury yield fell 1.6bp to 4.2519%, while the two-year rate fell 2.7bp to 4.9407%.
The German ten-year yield held steady at 2.606%, while that of the two-year rate stood still at 3.035%.
OIL
Oil falters after hitting its highest level in nearly a year on Tuesday, buoyed by the decision by Russia and Saudi Arabia to continue their output cuts until the end of the year.
Brent is stable at $89.95 a barrel, with US light crude (West Texas Intermediate, WTI) remaining flat at $86.59.
(Edited by Jean-Stéphane Brosse)
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