by CORENTIN CHAPRON
PARIS (Reuters) – Wall Street is expected to rise at the opening on Tuesday, while the European stock markets advance slightly at mid-session in a wait-and-see context, with many indicators and company results expected this week.
New York index futures suggest Wall Street opening in the green, with a gain of 0.27% for the Dow Jones, 0.42% for the Standard & Poor’s 500 and 0.52% for the Nasdaq. .
In Paris, the CAC 40 advanced 0.6% to 6,891.81 points around 10:40 GMT, compared to a decline of 0.15% for the FTSE in London, driven by the decline in Barclays. The Dax in Frankfurt increased by 0.22%.
The pan-European FTSEurofirst 300 index gained 0.10%, compared to an increase of 0.45% for the EuroStoxx 50 and 0.18% for the Stoxx 600.
Investors remain cautious at the start of a week full of results and indicators, which will clarify the trajectory of developed economies but could also convince the markets that key rates will remain restrictive for longer than expected.
On the corporate side, four of the “magnificent seven”, the seven technology companies whose performance contributed a large part to the rise in American stock markets this year, will publish their quarterly results this week.
Microsoft and Alphabet will notably publish their results on Tuesday, after the close of the American markets. In Paris, Hermès published its results in the morning before Kering expected after the close.
In terms of indicators, the PMI activity indicators published on Tuesday showed a European economy still weakening, which supported the region’s bond yields.
Third quarter GDP and inflation in the United States are due on Thursday and Friday respectively.
All of this data is of particular importance, as several central bank meetings will be held in the coming days: the European Central Bank on Thursday, the American Federal Reserve on November 1, and the Bank of England on November 2.
Investors are also keeping an eye on the Israeli-Palestinian conflict, which is helping to erode risk appetite.
VALUES TO FOLLOW IN EUROPE
Hermès reported on Tuesday organic growth in its turnover slowing in the third quarter but above expectations, with an increase in sales at constant exchange rates of 15.6%, to 3.13 billion euros. . The stock gained 2.34% and led luxury stocks in Paris to rise: LVMH gained 1.67% and Kering 0.24%.
Michelin lost 1.94% before the publication of its results, expected after the close.
Virbac jumped 12.62%, leading the SBF120, after the veterinary pharmaceutical company raised its forecasts for the current year and announced increased turnover for the third quarter.
Logitech soars 9.37% after the computer equipment manufacturer announced an improvement in its turnover in the second quarter and revised upwards its forecasts for the whole of 2023/24.
Barclays for its part dropped 5.97%, among the worst performances of the Stoxx 600, after suggesting on Tuesday that it would undertake a significant reduction in its costs later this year due to pressure on its margins. The banking sector in Europe fell by 0.47%.
RATE
European yields are in sharp decline after the publication of PMI indicators, which raise fears of a recession in the euro zone.
The yield on the German ten-year fell by 5 bp to 2.816%, that of the two-year rate fell by 3.5 bp to 3.149%.
Conversely, the ten-year Treasury rate rose 1.9 bp to 4.8568%, while the two-year rose 2 bp to 5.0817%.
CHANGES
The dollar is supported by the rise in US yields and the weakening of the euro and the pound sterling, after the publication of declining PMI activity indicators for the euro zone and Great Britain.
The greenback rose 0.3% against a basket of reference currencies while the euro lost 0.33% to $1.0633 and the pound sterling 0.15% to $1.223.
Cryptocurrencies are in demand amid speculation about the imminent launch of a bitcoin ETF.
Bitcoin climbs more than 9% to more than $34,000, the highest in 18 months, and ethereum gains 7% to more than $1,800.
OIL
The oil markets remain sensitive to developments in the situation in the Middle East and are progressing moderately in a context of uncertainty.
Brent strengthened by 0.75% to $90.5 per barrel, American light crude (West Texas Intermediate, WTI) was up 0.71% to $86.1.
In its annual “World Energy Outlook” report published Tuesday, the International Energy Agency said it forecast a peak in demand by 2030.
MORE MAJOR INDICATOR ON THE AGENDA FOR OCTOBER 24
(Written by Corentin Chappron, edited by Blandine Hénault)
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.
