by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to be virtually unchanged on Tuesday and the European stock markets are trading slightly at mid-session in a wait-and-see context before the publication of US inflation figures.
New York index futures signal Wall Street opening up 0.08% for the Dow Jones, 0.10% for the Standard & Poor’s 500 and 0.25% for the Nasdaq.
In Paris, the CAC 40 rose 0.17% to 7,099.05 points around 12:10 GMT. In Frankfurt, the Dax advances more clearly, by 0.47%, thanks in particular to “utilities”. In London, the FTSE fell by 0.41%, weighed down by the energy sector, Rolls Royce and economic data.
The pan-European FTSEurofirst 300 index lost 0.02%, the EuroStoxx 50 of the euro zone gained 0.29% and the Stoxx 600 nibbled 0.11%.
The main macroeconomic meeting of the week, the consumer price figures (CPI) in the United States will be known at 1:30 p.m. GMT. The Reuters consensus forecasts a deceleration to 0.1% in October and 3.3% over one year. The core CPI index, measuring basic inflation, should however remain unchanged at respectively +0.3% from one month to the next and +4.1% on an annual basis.
Investors hope that these statistics will provide indications on the evolution of rates of the American Federal Reserve (Fed) while its president, Jerome Powell, last week dashed the hope of an imminent drop in the cost of credit.
Questioned on the same subject, the President of the European Central Bank (ECB), Christine Lagarde, declared during the weekend that no change in rates in the euro zone was expected in “the next two quarters”.
In Britain, wage growth slowed to 7.7% in the three months to September on an annual basis, but remains close to its record level, according to data published by the ONS, which should keep the Bank in England (BoE) under pressure in its fight against inflation.
However, the markets continue to bet on a first rate cut by the Fed by the second quarter of 2024, while the cut in the euro zone is expected by May 2024 and by August 2024 for the BoE.
In the rest of today’s indicators, investor morale in Germany, measured by the ZEW index, has recovered more clearly than expected since the start of the month, returning for the first time to positive territory since April, with a figure of 9.8 points.
The euro zone economy contracted significantly in the third quarter, by 0.1%, compared to the previous three months, Eurostat data confirms.
VALUES IN EUROPE
Clariane (formerly Korian) tumbled 14.11%, the operator of retirement homes and clinics having announced a plan to raise 1.5 billion euros in a context of strengthening its financial structure in the face of significant financing difficulties.
Rolls-Royce is in the red (-0.20%), the Emirates airline having announced on Tuesday that it would not finalize an Airbus A350-1000 order in the short term due to a dispute with the British engine manufacturer.
Glencore advances by 3.15% thanks to its acquisition of a stake, via a consortium, in the coal division of the Canadian mining group Teck Resources, for an amount of nine billion dollars. The basic resources index takes 0.45%.
The community services group RWE gained 2.15% after an 82% jump in its operating profit over nine months.
Delivery Hero gains 4.74% after raising its annual outlook.
RATES/EXCHANGES Bond yields in the euro zone and the United States are generally stable ahead of American inflation. The German ten-year lost approximately one basis point, to 2.712, and its American equivalent of the same maturity dropped one point, to 4.6241%.
On the foreign exchange market, the dollar is also standing still (-0.05%) against a basket of reference currencies.
The euro is trading at $1.072 (+0.22%) and the pound sterling at $1.2289 (+0.09%).
OIL
The oil market is volatile, with investors torn between fears about the economy and the International Energy Agency (IEA) raising its forecast for growth in global crude demand for this year and for 2024.
Around 12:15 GMT, Brent lost 0.23% to $82.33 per barrel and American light crude (West Texas Intermediate, WTI) lost 0.18% to $78.12.
(Writing by Claude Chendjou, edited by Kate Entringer)
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