by Claude Chendjou

PARIS (Reuters) – Wall Street is expected to fall slightly on Tuesday and the European stock markets are also in the red at mid-session in a consolidation movement after the significant gains recorded this month and before the publication this week of figures for inflation in the eurozone and the United States.

Futures on New York indices signal a stable Wall Street opening (-0.01%) for the Dow Jones, a decline of 0.09% for the Standard & Poor’s 500 and a drop of 0.08% for the Nasdaq. .

In Paris, the CAC 40 fell by 0.60% to 7,222.22 points around 12:05 GMT. In Frankfurt, the Dax fell by 0.15% and in London, the FTSE fell by 0.41%.

The pan-European FTSEurofirst 300 index lost 0.6% and the eurozone’s EuroStoxx 50 lost 0.44%. The Stoxx 600, which lost 0.28% on Monday, fell again by 0.63%, penalized in particular by the decline in growth stocks in the wake of the “future” Nasdaq.

The main pan-European index, however, remains close to a more than two-month high, linked to hopes that major central banks are done with raising interest rates. This outlook will be tested by Thursday’s publication of consumer prices in the euro zone and Friday’s publication of the PCE price index in the United States, the preferred measure of inflation by the American Federal Reserve.

The Fed, the European Central Bank (ECB) and the Bank of England (BoE) will make their next monetary policy decisions on December 13 and 14.

Meanwhile, data released by the ECB on Tuesday showed that bank lending to eurozone businesses fell in October for the first time since 2015, contracting 0.3% after rising 0.2% in September. , a sign of a drying up of credit against a backdrop of monetary tightening.

Christine Lagarde, the president of the ECB, warned on Monday that the fight against inflation was not over, while Joachim Nagel, the president of the Bundesbank, reaffirmed Tuesday that the ECB could be led to raise its rates again. interest rates if the inflation outlook deteriorates.

“The speeches from central bank officials this week are aimed at dampening the enthusiasm generated by the possibility of a rapid rate cut,” explains Susannah Streeter, head of foreign exchange and markets at Hargreaves Lansdown.

“Fed Chairman Jerome Powell is also very likely to agree when he speaks on Friday,” she added.

VALUES TO FOLLOW AT WALL STREET

Retailers Amazon, Home Depot, Target, Walmart will be ones to watch as preliminary data from Adobe Digital Insights shows that online spending in the United States for “Cyber ​​Monday” is expected to exceed $12 billion this year, a record .

VALUES IN EUROPE

The luxury sector and technology groups, considered growth stocks, suffered on Tuesday on the stock market in Europe: LVMH, Kering and Richemont lost 2.64%, 3.02% and 2.42% respectively, while Worldline dropped 1 .69% and ASML 0.53%.

Atos fell 6.74%, the IT services group having announced that it was renegotiating its agreement with Daniel Kretinsky on Tech Foundations.

Ubisoft plunges 8.63% after announcing the placement of around 500 million euros of bonds convertible into shares.

In other compartments, easyJet gained 3.35% after announcing a profit for 2023 in line with analysts’ expectations, following a year marked by strong demand. The airline, however, warned that geopolitical instability would weigh on the current quarter.

Julius Baer lost 3.57% after Morgan Stanley lowered its advice on the Swiss bank to “online weighting” due to concerns about certain assets.

ABN Amro Bank fell 0.68%, Deutsche Bank having moved to “neutral” on the Dutch bank.

RATE

The ten-year German Bund yield is stable at 2.56%, after a fall of nine basis points on Monday. However, it is returning from a 12-year peak reached at the beginning of October, at 3.024%.

Its American equivalent of the same maturity appears at 4.4079%, also practically unchanged, after its sharp drop the day before linked to the more marked decline than expected in housing sales in the United States last month.

CHANGES

The dollar hit a three-month low on Tuesday against a basket of reference currencies before stabilizing (+0.01%), as currency traders continued to unwind their long positions on the greenback before inflation data. The index is on track to record a loss of more than 3% in November, its biggest drop in a year.

The euro stands at $1.0951 (-0.02%) and the pound sterling at $1.2617 (-0.06%), but both remain close to their highest level for around three months.

OIL

The oil market is trending upwards in anticipation of further production cuts by OPEC+ which meets on Thursday.

Brent rose 1.03% to $80.80 per barrel and American light crude (West Texas Intermediate, WTI) gained 1.07% to $75.66.

(Written by Claude Chendjou, edited by Blandine Hénault)

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