by Blandine Henault

PARIS (Reuters) – The main European stock markets are expected to rise on Wednesday at the opening, in the wake of Wall Street and Asia, and awaiting the monetary policy decision of the Federal Reserve (Fed) more late in the evening.

According to the first available indications, the Parisian CAC 40 could gain 0.41% at opening. Futures contracts signal an increase of 0.5% for the Dax in Frankfurt, 0.39% for the FTSE in London and 0.37% for the Stoxx 600.

The day should be calmer than usual due to the absence of certain European investors for a public holiday.

Waiting and waiting before the Fed’s announcements could also limit initiatives while investors are already busy digesting a burst of company results and economic indicators.

After the growth and inflation figures on Tuesday in Europe, market participants in the United States will follow the publication at 1:15 p.m. GMT of the ADP employment survey, before the publication of the highly anticipated one from the Labor Department on Friday.

The ISM manufacturing index, at 3:00 p.m. GMT, will also be closely monitored while similar PMI indices in Europe showed a deterioration in private sector activity in October.

VALUES TO FOLLOW:

A WALL STREET

The New York Stock Exchange ended higher Tuesday as investors prepared for the Fed’s rate decision, which kicked off its two-day policy meeting, and considered mixed quarterly results.

The Dow Jones index gained 0.38% to 33,052.87 points. The broader S&P-500 gained 0.65%, to 4,193.80 points. The Nasdaq Composite advanced 0.48% to 12,851.24 points.

In terms of values, Advanced Micro Devices unveiled quarterly forecasts below expectations on Tuesday, which caused its stock to fall in after-hours trading before comments on future sales of a chip intended to compete with Nvidia in artificial intelligence. bounces the action.

Futures contracts on the indices are currently reporting a decline of around 0.2% at the opening on Tuesday.

IN ASIA

The Tokyo Stock Exchange ended up 2.41%, still supported by the maintenance of an ultra-accommodating policy of the Bank of Japan and by the results of Toyota (+4.71%), which also announced a 100 billion yen share buyback program.

In China, the trend is more mixed after a new manufacturing PMI indicator showed an unexpected contraction in October. The CSI 300 index gains 0.18%.

RATES/EXCHANGES

Calm dominates the bond market and currencies before the announcements in the evening from the Fed which should, according to market consensus, maintain the status quo on the range of its federal funds.

The yield on ten-year Treasuries increased by three basis points, to 4.9053% and the dollar advanced slightly against a basket of reference currencies.

OIL

Crude prices are increasing on Wednesday awaiting announcements from the Fed and while the situation in the Middle East continues to be closely scrutinized.

A barrel of Brent gained 0.31% to 85.28 dollars and that of American light crude (WTI) gained 0.14% to 81.13 dollars.

(Written by Blandine Hénault)

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