PARIS (Reuters) – European markets are hesitant to open on Wednesday, in a context of caution and under pressure from the luxury sector, in decline after the results of LVMH.

In Paris, the CAC 40 fell 0.56% to 7,122.11 points around 07:35 GMT. In Frankfurt, the Dax is standing still, the FTSE in London dropping 0.13%.

The pan-European FTSEurofirst 300 index lost 0.13%, the EuroStoxx 50 0.35% and the Stoxx 600 was stable.

Futures on New York indices suggest a hesitant opening on Wall Street, with the Dow Jones holding up, compared to an increase of 0.14% for the Standard & Poor’s 500 and 0.23% for the Nasdaq.

Despite the Federal Reserve’s dovish tone, caution continues to dominate the markets, with investors positioning themselves ahead of Wednesday’s release of crucial data on producer prices in the United States, and minutes of the latest monetary policy meeting of the Fed.

US inflation will be released on Thursday, while earnings season begins on Friday.

Upward price surprises could put the Fed in a bad position and make it reconsider its “dovish” posture of recent days.

European stocks are also under pressure from the decline of LVMH, whose quarterly figures disappointed market expectations.

The stock is down 6.07%, heading towards its worst session since March 2020, and is dragging the entire luxury sector into its decline.

Kering and Hermès fell by 1.51% and 2.08% respectively, while Burberry lost 3.68%, and the Swiss Richemont and Swatch lost 4.17% and 2.48%.

(Written by Corentin Chappron, edited by Kate Entringer)

Copyright © 2023 Thomson Reuters