by CORENTIN CHAPRON

(Reuters) – The main European stock markets are expected to open in the green on Tuesday, after the Bank of Japan’s monetary policy decision and ahead of new indicators expected later this week.

Futures contracts suggest an opening up 0.34% for the Parisian CAC 40, compared to 0.29% for the FTSE in London, 0.21% for the Dax in Frankfurt, and 0.24% for the EuroStoxx 50.

The Bank of Japan maintained its negative rates on Tuesday and also did not review its rate curve control policy, maintaining the fluctuation band of the 10-year yield at plus or minus 1% around 0%.

The Chinese government, for its part, has pledged to further support its economy, with investors remaining cautious about the local outlook.

The Chinese Prime Minister’s Office said it would take more measures to restore market confidence, including larger capital injections, while the government would seek to mobilize 2 trillion yuan to stabilize plummeting domestic markets. , according to information from Bloomberg.

The markets are also awaiting the European Central Bank’s decision this week on Thursday, as well as PMI activity indicators on Wednesday and PCE inflation in the United States on Friday.

The earnings season will continue with the publication of figures from Netflix and General Electric on Tuesday.

VALUES TO FOLLOW:

A WALL STREET

The New York Stock Exchange ended up on Monday in the wake of the S&P 500 which broke its record for the second consecutive session.

The Dow Jones index gained 0.36%, or 138.01 points, to 38,001.81 points. The broader Standard & Poor’s 500 gained 10.62 points, or 0.22% to 4,850.43 points. The Nasdaq Composite advanced 49.32 points (0.32%) to 15,360.286.

IN ASIA

The Tokyo Stock Exchange ended almost unchanged on Tuesday, after the BoJ’s decision. The Nikkei index lost 0.08% to 36,517.57 points. The broader Topix lost 0.11% to 2,542.07 points.

On Chinese markets, the Shanghai SSE Composite gained 0.53% and the CSI 300 0.4%, while the Hong Kong Hang Seng index advanced 2.89%, with government announcements helping to improve sentiment.

RATE

US yields are stable in the absence of data. The yield on the Japanese 10-year bond rebounds after the BoJ’s unsurprising decision.

The ten-year Treasury yield climbs 1.7 bp to 4.1109%, while the two-year rate rises 1.5 bp to 4.3912%.

The yield on the 10-year Japanese sovereign rose by 2.9 bp to 0.669%.

The yield on the German ten-year rose by 2 bp to 2.309%, while that of the two-year rate was stable at 2.697%.

CHANGES

The yen jumped after the BOJ’s decision, while the yuan benefited from promises of new support measures for the Chinese economy.

The yen strengthened by 0.58% to 147.23 yen per dollar while the yuan gained 0.33%.

The dollar declines by 0.33% against a basket of reference currencies, while the euro takes 0.28% to 1.0911 dollars and the pound sterling 0.29% to 1.2743 dollars.

OIL

Oil is rising cautiously as markets seek to balance the supply and demand outlook, between falling US production due to a cold snap and rising geopolitical tensions.

Brent advanced 0.17% to $80.2 per barrel, with American light crude (West Texas Intermediate, WTI) gaining 0.23% to $74.93.

(Written by Corentin Chappron, edited by Bertrand Boucey and Blandine Hénault)

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