by Diana Mandia
(Reuters) – Wall Street is expected to fall on Tuesday and the European stock markets are trading in mixed order at mid-session, the technology sector showing losses after Oracle’s disappointing forecasts and while caution is required before the publication of the figures US inflation on Wednesday and the European Central Bank (ECB) rate decision on Thursday.
Futures on New York indices signal an opening on Wall Street down 0.11% for the Dow Jones, 0.17% for the Standard & Poor’s-500 and 0.15% for the Nasdaq.
In Paris, the CAC 40 lost 0.19% to 7,264.36 around 10:45 GMT. In Frankfurt, the Dax fell 0.26%, while in London, the FTSE, focused on exports and supported by a weak pound sterling after data on the British labor market, gained 0.56%.
The pan-European FTSEurofirst 300 index gained 0.11%, the eurozone’s EuroStoxx 50 fell 0.1% and the Stoxx 600 gained 0.1%.
Investors are cautiously awaiting US inflation figures on Wednesday, on the eve of the European Central Bank (ECB) rate decision, which is expected to opt for the status quo in September but make a final 25-point hike by the end of the year, according to market estimates.
The European decision precedes those of the American Federal Reserve (Fed), on September 20, and the Bank of England (BoE), on September 22. While the former is widely expected to take a breather on rates, the rise in the UK unemployment rate suggests the latter’s forecast rise next week could be the latter.
Elsewhere in Europe, German investor sentiment unexpectedly improved in September, according to economic research institute ZEW, while consumer prices in Spain rose 2.6% year-on-year in August, mainly due to rising fuel prices.
Economic fears persist, particularly in China, which risks posting weaker-than-expected growth this year and next due to continued difficulties in its property market, according to a Reuters survey of economists.
VALUES TO FOLLOW AT WALL STREET
The New York Stock Exchange should open lower on Tuesday after the previous day’s gains, with caution needed before the inflation figures.
The cloud computing services provider Oracle lost 9% in pre-market trading after forecasting lower-than-expected revenue for the current quarter.
VALUES IN EUROPE
In terms of values, the technology compartment lost 0.67%, weighed down by SAP, which in turn fell by 2.2% after the disappointing forecasts of its American counterpart Oracle for the current quarter.
The health sector, on the other hand, gained 0.59% with increases in drug manufacturers Novartis, Novo Nordisk and Roche.
Primark’s parent company, Associated British Foods, which revised its annual profit forecast upwards for the second time in four months, rose 7.7%.
In Paris, Rallye plunged 11.6%, the AMF having imposed a sanction on the parent company of Casino (-2.7%) for market manipulation.
Airbus lost 1.5% after engine supplier Pratt & Whitney warned on Monday of a manufacturing defect that could ground hundreds of planes in the years to come.
In Milan, Campari lost 4.3% after the announcement of the departure of its general director, Bob Kunze-Concewitz, who will leave his position in April 2024.
RATE
Bond yields are virtually unchanged on Tuesday pending US inflation and central bank decisions. The German ten-year yield is virtually unchanged on Tuesday at 2.62%, and that of the two-year rate at 3.10%.
In the United States, the ten-year US Treasury bond rate stands at 4.28%, and the two-year rate stands at 4.99%.
In the United Kingdom, the yield on two-year gilts fell by almost 5 basis points to 5.02%,
CHANGES
The dollar, which recorded an eighth consecutive weekly session of gains last week, was little changed on Tuesday, gaining 0.2% against a basket of benchmark currencies, while the euro lost 0.33%. at $1.0712.
In Asia, the yen, which jumped on Monday with Kazuo Ueda’s comments on rates, fell 0.26% on Tuesday to 146.96 yen per dollar.
OIL
The oil market is rising ahead of the release of OPEC’s monthly oil market report later today, followed on Wednesday by a report from the International Energy Agency, which is expected to provide insight into the outlook for supply and demand for crude oil.
Brent rose 0.7% to $91.27 per barrel, with American light crude (West Texas Intermediate, WTI) increasing 0.85% to $88.03.
(Written by Diana Mandiá)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
