by CORENTIN CHAPRON

PARIS (Reuters) – Wall Street is expected to be hesitant at the opening on Wednesday, while European stock markets are looking for direction at mid-session under the pressure of disappointing results and in a context of caution before several important economic events.

Futures on New York indices suggest a mixed opening on Wall Street, with the Dow Jones nibbling 0.1%, while the Standard & Poor’s 500 drops 0.35% and the Nasdaq 0.57%.

In Paris, the CAC 40 declined by 0.18% to 6,881.35 points around 10:50 GMT, while the FTSE in London and the Dax in Frankfurt were stable.

The pan-European FTSEurofirst 300 index lost 0.14%, compared to a decline of 0.12% for the EuroStoxx 50 and 0.2% for the Stoxx 600.

Earnings season is in full swing, and several disappointing publications are putting pressure on the markets in Europe, including Alphabet’s results. The company had helped support the performance of the equity markets in the United States in 2023, and a disappointment in its results could therefore erode an already degraded risk appetite.

This bad news comes as markets are still worried about the trajectory of rates in developed economies.

The meeting of the European Central Bank on Thursday, the publication of new indicators in the United States on Thursday and Friday, then the meeting of the Federal Reserve next Wednesday, will help investors clarify this trajectory – with the risk that the markets are again surprised by the restrictive tone of central bankers.

VALUES TO FOLLOW IN WALL STREET

If Alphabet disappointed investors, Microsoft on the contrary beat forecasts for its first quarter turnover, thanks to the growth of its cloud computing and office software activities.

VALUES TO FOLLOW IN EUROPE

Worldline collapses on the stock market by 57.61% after lowering its financial objectives for 2023 and announcing a cost reduction plan in the face of the deterioration of the economic situation.

Kering declines by 3.35% after its quarterly results, during which the group announced a turnover of 4.46 billion euros, a drop of 9% on a comparable basis while analysts expected a decline of about 6%.

Dassault Systemes jumped 8.34% at the top of the CAC 40 after revising upwards on Wednesday its earnings per share forecast for 2023, after faster than expected growth in its turnover in the third quarter.

ASM International advances by 6.47% after exceeding its turnover forecasts for the third quarter on Tuesday, thanks to a strong contribution from the Chinese market.

Deutsche Bank increased by 6.7% after its quarterly results, the bank having reported an 8% drop in its net profit in the third quarter, less significant than expected.

RATE

Yields are up slightly but remain wait-and-see before the publication of crucial indicators in the United States at the end of the week.

The ten-year Treasury yield rose 2.8 bp to 4.8676%, while the two-year rose 1.4 bp to 5.0853%.

The yield on the German ten-year rose by 3 bp to 2.864%, that of the two-year rate rose by 1 bp to 3.166%.

CHANGES

The foreign exchange markets remain focused on the next publication of indicators, including GDP growth in the United States on Thursday and American inflation on Friday.

The dollar gained 0.16% against a basket of reference currencies, the euro lost 0.15% to 1.0572 dollars and the pound sterling lost 0.31% to 1.2121 dollars.

OIL

Oil markets are hesitant, torn between concerns about the evolution of the conflict in the Middle East, which could weigh on supplies, and concerns about the state of the global economy, which could lead to a decline in demand. in oil.

Brent is stable at $88.03 per barrel and American light crude (West Texas Intermediate, WTI) drops 0.2% to $83.57.

(Written by Corentin Chappron, edited by Blandine Hénault)

Copyright © 2023 Thomson Reuters