PARIS (Reuters) – Wall Street is expected to be mixed at the opening on Wednesday while the European stock markets hesitate at mid-session, the markets evolving according to the declarations of central bankers during a week poor in publications.
Futures on New York indices suggest an uncertain opening on Wall Street, with the Dow Jones, the Standard & Poor’s 500 and the Nasdaq not showing any marked direction.
In Paris, the CAC 40 increased by 0.22% to 7,001.41 points around 10:43 GMT, against a hesitant FTSE in London and a Dax in Frankfurt.
The pan-European FTSEurofirst 300 index and the Stoxx 600 are standing still, while the EuroStoxx 50 is nibbling 0.10%.
Risky assets hesitated during a week poor in indicators, after having been encouraged by several central bank decisions in recent weeks suggesting the end of rate increases.
In fact, those responsible for monetary policy seek to temper investor optimism, which contributes to easing financial conditions and the transmission of central bank policies to the markets.
On the European Central Bank side, members of the board of governors Martins Kazaks and Philip Lane reminded Wednesday in Riga that progress on underlying inflation was not enough.
On the Federal Reserve side, several officials argued Tuesday that the resilience of activity could justify further rate increases.
Jerome Powell, Chairman of the Fed, will speak on Wednesday, adding to the wait-and-see attitude.
The trajectory of developed economies also worries investors.
“We believe that we have indeed arrived at the end of the cycle of rate increases but this view is associated with a mediocre growth scenario for the quarters to come, on both sides of the Atlantic”, summarize the strategists at LBPAM.
“Thus, we remain doubtful about the possibility of a very strong rebound in stock market indices at this stage, knowing that the economic trajectory should result in a deterioration in company results.”
VALUES TO FOLLOW IN WALL STREET
Amazon is developing an ambitious artificial intelligence model that would have twice as many parameters as OpenAI’s GPT-4 models, two sources told Reuters.
Gilead Sciences said Tuesday that its third-quarter revenue was little changed from a year earlier but profits rose 21%, mainly due to tax cuts, and were above of consensus.
VALUES TO FOLLOW IN EUROPE
Crédit Agricole rose 1.95%, one of the best performances in the CAC40, after reporting better-than-expected quarterly results on Wednesday, driven by the solid performance of its financing and investment division and its business. retail bank.
Legrand fell 1.06% after the specialist in electrical and digital building infrastructure lowered its annual turnover growth forecast to the bottom of the range on Wednesday.
Renault announced on Wednesday that it had reduced its stake in Nissan to 15% as part of the finalization of its new partnership agreement with the Japanese group, and increased by 1.36%.
ABN Amro published net interest income lower than market expectations on Wednesday and fell 9.73%, at the bottom of the Stoxx 600.
Commerzbank fell 3.03% after its quarterly results.
Bayer reported on Wednesday a decline in its third quarter profit and announced the elimination of several executive positions, the stock lost 0.66%.
RATE
The yield on the ten-year Treasury is stable at 4.5749% before Jerome Powell’s speech, while the two-year rose by 1.8 basis points to 4.9362%.
The German ten-year yield fell by 2 bps to 2.647%, that of the two-year rate rose by 1.4 bps to 3.083%.
CHANGES
The dollar is strengthening, supported by statements from Fed officials.
The dollar gained 0.17% against a basket of reference currencies, the euro lost 0.24% to 1.0673 dollars and the pound sterling 0.32% to 1.226 dollars.
OIL
Crude is suffering from concerns about weakening demand in the United States, with the American Energy Information Administration having warned that crude consumption would be lower than expected in 2023 as oil stocks grow.
Brent dropped 0.66% to 81.07 dollars per barrel, American light crude (West Texas Intermediate, WTI) declined 0.76% to 76.78 dollars.
(Written by Corentin Chappron)
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