(Reuters) – Wall Street is expected to fall on Wednesday and the European stock markets are trading in mixed order at mid-session in a calm day due to the All Saints’ Day holiday and awaiting the monetary policy decision of the Federal Reserve ( Fed) later in the evening.
Futures on New York indices signal an opening on Wall Street down 0.36% for the Dow Jones, 0.42% for the Standard & Poor’s-500 and 0.45% for the Nasdaq.
In Paris, the CAC 40 lost 0.15% to 6,875.28 around 11:53 GMT. In Frankfurt, the Dax is stable and in London, the FTSE falls by 0.11%.
The pan-European FTSEurofirst 300 index gained 0.09%, the EuroStoxx 50 in the euro zone lost 0.09% and the Stoxx 600 gained 0.07%.
The session is marked by a wait-and-see attitude before the announcements from the Fed, which should leave its interest rates unchanged on Wednesday, and while the public holiday in a large part of Europe has attenuated the burst of corporate results that investors have to digest this week.
The slight rise in bond yields in the euro zone, however, limited the initial gains of European markets.
Investors will also watch on Wednesday for the publication at 1:15 p.m. GMT of the ADP employment survey in the United States and the ISM manufacturing index at 3:00 p.m. GMT.
The latter will be closely monitored as similar PMI indices in Europe have recently shown a deterioration in activity, and data released on Tuesday indicated that the euro zone economy has started to contract under the impact of the hikes. of the European Central Bank (ECB).
In the United Kingdom, private sector activity recorded an unexpected decline in October, the S&P Global/CIPCIPS monthly survey showed on Wednesday.
VALUES TO FOLLOW AT WALL STREET
Index futures give a lower opening for the New York Stock Exchange, with a wait-and-see attitude prevailing ahead of the Fed rate decision.
VALUES IN EUROPE
The retail sector rose 0.85% helped by the 3.3% rise in Britain’s Next, which raised its profit outlook for 2023 for the fourth time in six months.
Barry Callebaut is also up and advances 6.4% after publishing annual results in line with expectations and an update of medium and long-term objectives.
The Dane Orsted, on the other hand, fell by 17% after reporting a larger loss than expected in the third quarter.
In London, Asos plunged by 11% after warning of a decline of between 5% and 15% in its sales for its 2023-2024 fiscal year.
In Paris, Valeo gained 2.73% after Goldman Sachs’ recommendation was raised to “neutral” from “sell”.
RATE
Bond yields are stable on Wednesday before the outcome of the Fed’s general policy meeting and the publication of US economic data.
The yield on the German ten-year rate is at 2.82% and that of the two-year rate at 3.07%.
In the United States, the ten-year Treasury yield stands at 4.90% and the two-year rate at 5.06%.
CHANGES
Calm also dominates currencies before the evening announcements from the Fed.
The dollar advanced 0.22% against a basket of reference currencies, with the euro EUR= falling 0.32% to $1.0542.
OIL
Oil is higher on Wednesday awaiting the Fed’s decision and as concerns about the impact of the Middle East conflict on supply persist.
Brent rose by 1.8% to $86.6 per barrel, with American light crude (West Texas Intermediate, WTI) increasing by 1.97% to $82.62.
(Some data may have a slight lag)
(Written by Diana Mandiá)
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