PARIS (Reuters) – The main European stock markets are expected to rise at the opening on Wednesday, driven by optimism about American rates, in a calm market context before the end of the year.
Futures contracts suggest an opening up 0.57% for the Parisian CAC 40, compared to 0.53% for the FTSE in London, 0.41% for the Dax in Frankfurt, and 0.53% for the EuroStoxx 50.
The markets are betting that the American Federal Reserve will soon be finished with rate hikes, an optimism justified by the latest indicators which showed a decline in inflation and a slowdown in activity in the United States compatible with a scenario of ‘soft landing.
Money markets consider a Fed rate cut almost certain as early as March.
Trading remains marked by low volatility, while most operators are on vacation and no major economic indicators or events are expected between now and the end of the year.
Only new unemployment claims in the United States for the week ending December 23 will be published on Thursday at 1:30 p.m. GMT.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended up on Tuesday, confirming the dynamics of recent weeks, with the S&P-500 having reached a peak in session for almost two years, while investors anticipate a reduction in Fed rates in 2024, possibly from the first trimester.
The Dow Jones index gained 0.43%, or 159.36 points, to 37,545.33 points. The broader S&P-500 gained 20.12 points, or 0.42%, to 4,774.75 points. The Nasdaq Composite advanced 81.60 points (0.54%) to 15,074.57 points.
IN ASIA
The Tokyo Stock Exchange ended up on Wednesday, driven by semiconductor manufacturers, in the wake of Wall Street, and by exporters, supported by the fall in the yen. The Nikkei index gained 1.13% to 33,681.24 points and the broader Topix gained 1.10% to 2,364.50 points.
SoftBank Group posted the biggest gain on the Nikkei, rising 4.23% after exercising an option to receive shares of telecommunications operator T-Mobile US worth about $7.59 billion.
Chinese indices are increasing after two days of closure Monday and Tuesday. The Shanghai SSE Composite gained 0.54%, the CSI 300 0.35%, the Hong Kong Hang Seng index advanced 1.73%.
RATE
American yields are hesitating in a wait-and-see environment.
The ten-year Treasury yield is stable at 3.8835%, while the two-year rate is stagnating at 4.2973%.
The German ten-year yield remains at 1.962%, while that of the two-year rate rises 3 bp to 2.445%.
CHANGES
The currency market is calm, with the dollar remaining near its lowest in five months.
The dollar is unchanged against a basket of reference currencies, while the euro remains at $1.1048, and the pound sterling at $1.2733.
In Asia, the yen fell by 0.23% to 142.71 yen per dollar, while the Australian dollar gained 0.15% to 0.6834 dollars.
OIL
Oil is hesitating as markets remain attentive to developments in the Red Sea.
Brent advanced 0.1% to $81.15 per barrel, American light crude (West Texas Intermediate, WTI) was stable at $75.53.
(Written by Corentin Chappron, edited by Tangi Salaün)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
