by Claude Chendjou

PARIS (Reuters) – Wall Street is expected to rise on Tuesday at the opening and European stock markets continue their rebound mid-session after the publication of numerous economic indicators and results from large companies while investors keep an eye on decisions of the American Federal Reserve (Fed) which meets for two days.

New York index futures signal Wall Street opening up 0.02% for the Dow Jones, 0.16% for the Standard & Poor’s 500 and 0.05% for the Nasdaq.

In Paris, the CAC 40 advanced 1.06% to 6,897.19 points around 11:50 GMT. In Frankfurt, the Dax gained 0.62% and in London, the FTSE increased by 0.45%.

The pan-European FTSEurofirst 300 index is up 0.67%, the eurozone EuroStoxx 50 is up 1% and the Stoxx 600 is up 0.73%.

Among the many indicators of the day, preliminary data published by Eurostat show that the slowdown in inflation in the euro zone increased in October to 2.9% year-on-year, driven by a sharp fall in prices. Energy.

This statistic could reassure the European Central Bank (ECB), which last week opted for a pause in its monetary tightening, that rates are now at a sufficiently restrictive level.

Especially since at the same time the GDP of the euro zone recorded an unexpected contraction of 0.1% in the third quarter compared to the previous three months.

In the United States, the Fed’s monetary policy committee meets this Tuesday for two days and should also opt for a status quo on rates, according to economists’ forecasts. The market will, however, be attentive to the comments of Jerome Powell, the president of the Fed, on a possible first rate cut.

In Japan, the Bank of Japan (BoJ) again modified its yield curve control policy on Tuesday, a further, albeit timid, step towards the end of its ultra-accommodative monetary support.

In addition to monetary policy, investors must also digest a shower of corporate results in Europe and the United States.

VALUES TO FOLLOW AT WALL STREET

Caterpillar, considered a reliable barometer of the economy, lost 4% after its quarterly results, while Pfizer fell 0.5% after having its first quarterly loss since 2019.

Pinterest jumped 15.9% in pre-market trading thanks to better-than-expected results for the third quarter in a context of recovery in the advertising market.

VALUES IN EUROPE

In Paris, Thales lost 2.33%, penalized by order intake considered disappointing in the third quarter despite an increase in its turnover over the period, while Bouygues, which posted a more solid current operating result than expected over nine months, takes 4.77%.

In Frankfurt, BASF jumped 4.87% after announcing a program of additional cost reductions, while Uniper climbed 6.45% after reporting a nine-month net profit.

In London, BP plunged 4.55%, the oil group’s quarterly profit having disappointed due in particular to weak results in gas and a depreciation of a large part of a wind farm project in the United States. United.

On a sectoral level, energy fell by 1% and real estate rose by 2.39%, thanks in particular to the fall in bond yields.

RATE

Bond yields in the euro zone fell sharply after the inflation figures in the bloc: that of the ten-year German Bund fell more than seven basis points, to 2.773%.

Sovereign yields in the United States are also falling, with the ten-year losing around four basis points, to 4.8498%.

The yield on ten-year Japanese government bonds, for its part, rose six basis points, to 0.951%, to its highest level in ten years.

CHANGES

The yen dropped 1.22% against the greenback, to 150.92 yen per dollar, the Bank of Japan having maintained its ultra-accommodating policy despite a relaxation of control of the yield curve.

The dollar increased by 0.11% against a basket of reference currencies, including the euro which advanced by 0.13% to 1.0627 dollars.

The pound sterling is practically unchanged (-0.06%) at 1.2161 dollars, two days before the monetary policy decision of the Bank of England (BoE).

OIL

Oil prices are rising again, but the gains are limited by the weakness of Chinese economic statistics: the barrel of Brent advances by 0.59% to 87.97 dollars and that of American light crude oil (WTI) by 0.74%. at $82.92.

(Written by Claude Chendjou, edited by Bertrand Boucey)

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