by Augustin Turpin

(Reuters) – Wall Street is expected to rise slightly on Wednesday thanks to the fall in bond yields, while the main European stock markets hesitate at mid-session, notably under pressure from the luxury sector, in decline after the results of LVMH .

Futures on New York indices signal an opening up 0.27% for the Dow Jones, 0.28% for the Standard & Poor’s-500 and 0.38% for the Nasdaq.

In Paris, the CAC 40 lost 0.36% to 7,136.7 points around 11:15 GMT.

LVMH shares fell 5.65% as the luxury group reported lower-than-expected third-quarter sales, as inflation and economic turmoil dented consumers’ appetite for high-end fashion.

In Frankfurt, the Dax gained 0.03% and in London, the FTSE gained 0.08%.

The pan-European FTSEurofirst 300 index gained 0.16%, while the EuroStoxx 50 in the euro zone lost 0.27%. The Stoxx 600 rose 0.13%, after gaining almost 2% on Tuesday, recording its biggest increase in one session since the start of the year, thanks to a fall in US Treasury yields at the following comments deemed accommodating made by several officials of the Federal Reserve (Fed).

Bond yields continue to fall on Wednesday while awaiting the minutes of the latest Fed meeting while markets are counting on a status quo on federal funds rates in November and December.

“Recent developments give us comfort that yields are likely to decline over the next 6 to 12 months,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.

However, caution remains in order, with the ongoing conflict between Israel and Palestinian Hamas rekindling fears of a new surge in oil prices as US inflation data will be released on Thursday, ahead of Friday’s kick-off of corporate earnings season in the United States.

VALUES TO FOLLOW AT WALL STREET

Exxonmobil announced on Wednesday the purchase of its American competitor Pioneer Natural Resources for $59.5 billion. In pre-market trading, ExxonMobil fell 1% and Pioneer advanced 2.8%.

HP Inc gains around 1% in pre-market trading after raising its annual dividend and publishing a profit generally in line with expectations for the current fiscal year.

VALUES IN EUROPE

In the wake of LVMH, Kering and Hermès fell by 1.47% and 0.65% respectively, while Burberry lost 2.3%, and the Swiss group Richemont 3.6%.

Novo Nordisk takes 3.5% after declaring that it is ending a trial on Ozempic to treat kidney failure in diabetic patients earlier than expected.

RATE

The German ten-year yield drops more than 7 basis points, to 2.71%, and the two-year yield is almost stable, at 3.073%.

In the United States, the ten-year yield lost more than 9 basis points, to 4.5623%, and the two-year yield lost around 2 points to 4.9631%.

CHANGES

The dollar is stable against a basket of benchmark currencies, its potential gain limited by the latest statements from Fed officials.

The euro fell 0.03% to 1.0601 dollars.

OIL

Oil prices are falling slightly as fears of a disruption in supplies due to the conflict between Israel and Hamas have temporarily eased.

Brent dropped 0.25% to $87.43 per barrel and American light crude (West Texas Intermediate, WTI) lost 0.35% to $85.67 CLc1

(Written by Augustin Turpin, edited by Claude Chendjou)

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