by Claude Chendjou

PARIS (Reuters) – European stock markets are expected to rise on Wednesday in the wake of gains in recent sessions, with investors increasingly convinced that the rates of the major central banks which meet next week are now at their peak.

The wait for the publication of several economic indicators in Europe and the United States for today’s session and the rest of the week could, however, cause some volatility.

According to the first available indications, the Parisian CAC 40 should gain 0.23% at opening. The Dax in Frankfurt, which reached a historic high on Tuesday at 16,551.34 points, could gain 0.17%. The FTSE 100 in London is expected to rise by 0.31%. The EuroStoxx 50 index is expected to rise by 0.22%.

The improvement in the markets, which began in November against a backdrop of relaxation in the bond compartment born from the hope of a reduction in rates from the major central banks, will be put to the test in particular by the sales indicator in the detail in the euro zone for the month of October scheduled for 10:00 GMT.

The publication at 1:15 p.m. GMT of the ADP survey on private employment in the United States should give an overview of the American labor market before the official monthly report on Friday, the main meeting of the week.

The US Department of Labor’s Job Openings and Labor Turnover Survey showed Tuesday that the number of job openings in the country fell in October to its lowest level since the start of 2021, a sign a relaxation in the labor market.

The US Federal Reserve (Fed), the European Central Bank (ECB) and the Bank of England (BoE) will hold their respective monetary policy meetings next week, while decisions from the Bank of Canada (BoC) are expected this Wednesday at 3:00 p.m. GMT.

A WALL STREET

The New York Stock Exchange ended in scattered order on Tuesday after mixed statistics showing in particular signs of relaxation in the labor market but an increase in service activity.

The Dow Jones index fell 0.22%, or 79.88 points, to 36,124.56 points. The broader Standard & Poor’s 500 lost 2.60 points, or 0.06% to 4,567.18 points. The Nasdaq Composite advanced 44.42 points (0.31%) to 14,229.912.

In stocks, Nvidia, Amazon.com, Tesla and Apple rose, driven by the decline in Treasury bond yields which fell to their lowest level in several months.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index ended with a rebound of 2.04% to 33,445.9 points, while the broader Topix gained 1.9% to 2,387.2 points. The indices were notably supported by semiconductor values.

In China, the Shanghai SSE Composite fell by 0.06% and the CSI 300 dropped by 0.36%, with market sentiment remaining fragile after Moody’s downgraded China’s rating outlook.

VALUES TO FOLLOW IN EUROPE:

CHANGES

The dollar is stable (+0.01%) against a basket of reference currencies

The euro fell by 0.06%, to 1.0788 dollars, while the pound sterling stood at 1.2599 dollars (+0.05%).

RATE

On the bond market, the yield on ten-year US Treasury bonds rose slightly, by around two basis points, to 4.1934%, after falling Tuesday during the session to 4.163%, the lowest in three months.

In the euro zone, the yield on the German Bund of the same maturity ended Tuesday at 2.238%, a low since mid-May.

OIL

Oil prices are stable on Wednesday after four sessions of decline, with markets assessing the impact of a possible drop in OPEC+ production and a deterioration in demand in China.

Brent nibbles 0.01% to $77.21 per barrel and American light crude (West Texas Intermediate, WTI) gains 0.1% to $72.25.

MAIN ECONOMIC INDICATORS ON THE AGENDA FOR DECEMBER 6

COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS

FROM 07:00 Orders to industry October +0.2% +0.2%

EZ 10:00 Retail sales October +0.2% -0.3%

– over one year -1.1% -2.9%

USA 1:15 p.m. Private employment (ADP survey) November 130,000 113,000

(Written by Claude Chendjou, edited by Bertrand Boucey)

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