by Claude Chendjou

PARIS – The main European stock markets are expected to decline slightly on Tuesday after profit taking following the recent rally in the stock markets, caution being also required before the publication of several economic indicators, including inflation in the zone euro, and planned interventions from several central bankers.

According to the first available indications, the Parisian CAC 40 should lose 0.45% at the opening, the Dax in Frankfurt 0.28% and the FTSE 100 in London 0.25%. The EuroStoxx 50 index is expected to fall by 0.38%.

In today’s economic agenda, the market awaits monthly figures for producer prices in the euro zone, while on Wednesday the final data on inflation and retail sales in the community bloc will be published. These statistics could influence market expectations which now predict that the major central banks should no longer raise their respective interest rates.

A reduction in the interest rate on the part of the European Central Bank (ECB) is even expected from June, while the Bank of England (BoE) could wait until August and the American Federal Reserve (Fed) the month of June, according to futures contracts.

In addition to macroeconomic data, investors will be watching central bankers’ interventions this week, including that of Fed Chairman Jerome Powell scheduled for Wednesday, as bond yields in Europe and the United States have largely fallen from their October peaks. .

A WALL STREET

The New York Stock Exchange ended slightly higher on Monday as investors wait to see their hope of an end to the Federal Reserve’s rate hikes reinforced by the numerous monetary policy officials who will speak this week.

The Dow Jones index gained 0.10%, or 34.54 points, to 34,095.86 points.

The broader S&P-500 gained 7.64 points, or 0.18%, to 4,365.98 points.

The Nasdaq Composite advanced 40.5 points (0.30%) to 13,518.78 points.

Markets are counting on rates remaining at current levels again in December ahead of speeches this week by central bank President Jerome Powell and other members.

“Unless they are pushed to do so by economic data, we should not see a change of tone on their part,” said Stephen Massocca, vice-president of Wedbush Securities in San Francisco.

In terms of values, Tesla ended up in the red, with the manufacturer planning to build a car costing 25,000 euros and salary increases in Germany, according to a source at Reuters.

Dish Network fell 37.4%, to a 25-year low, after disappointing quarterly revenue and the announcement of the departure of its CEO, Erick Carlson.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index ended with a loss of 1.34% to 32,271.82 points, while the broader Topix dropped 1.17% to 2,332.91 points.

The MSCI index bringing together stocks from Asia and the Pacific (excluding Japan) lost 1.2% after three consecutive sessions in the green which allowed the index to gain almost 6%.

In China, the Shanghai SSE Composite gained 0.01% but the CSI 300 rose by 0.32%.

In terms of economic statistics, China’s exports declined last month (-6.4% year-on-year) at a greater rate than expected while imports increased (+3.0%) unexpectedly, highlighting the uneven recovery of the world’s second largest economy.

The International Monetary Fund (IMF) also raised its growth forecasts for China on Tuesday, now expecting GDP to increase by 5.4% this year and 4.6% next year.

VALUES TO FOLLOW IN EUROPE:

Engie announced an upward revision of its annual objectives, while Capgemini reported an increase in turnover for the first nine months of the year.

UBS, for its part, published a loss of 785 million dollars (732.86 million euros) for the third quarter linked to the takeover of Crédit Suisse.

EXCHANGES/RATES

The American currency strengthened slightly (+0.19%) against a basket of reference currencies, while the euro caught its breath, losing 0.18%, to 1.0696 dollars.

“Aside from monetary policy, it is weak global growth and abundant geopolitical risks, ranging from Taiwan to the Middle East to Russia, that we believe provide support as a safe-haven asset for the dollar “, write Alan Ruskin and George Saravelos, strategists at Deutsche Bank.

On the bond market, the yield on ten-year US Treasury bonds fell by a little more than one basis point, to 4.6495%, after having increased by 10.2 bps the day before.

The Bund yield of the same maturity is almost stable, at 2.746%, after a gain of around nine bps on Monday.

OIL

Mixed economic data from China weighs on the oil market: Brent falls by 1.08% to 84.26 dollars per barrel and American light crude (West Texas Intermediate, WTI) by 1.06% to 79.96 dollars.

(Written by Claude Chendjou, edited by Jean-Stéphane Brosse and Blandine Hénault)

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