by Augustin Turpin

(Reuters) – Wall Street is expected to be hesitant and European stock markets are moving into negative territory mid-session on Tuesday, with the utilities, real estate and health sectors leading the decline in a context of caution before publication of several key indicators at the end of the week.

In Paris, the CAC 40 was down 0.23% at 7,396.45 around 11:45 GMT. In Frankfurt, the Dax lost 0.14% and in London, the FTSE lost 0.25%.

The pan-European FTSEurofirst 300 index lost 0.34%, the EuroStoxx 50 of the euro zone 0.38% and the Stoxx 600 0.3%.

Futures on New York indices signal an opening on Wall Street down 0.19% for the Dow Jones, stable for the Standard & Poor’s-500 and very slightly up 0.05% for the Nasdaq.

After several days of clear optimism on the markets, with a record S&P to boot, the climate is now one of wait-and-see before the ECB’s monetary policy meeting on Thursday, which must determine whether the central bank will maintain its monetary policy at its current level.

The Bank of Japan maintained its negative rates on Tuesday and also did not review its yield curve control policy.

Traders on average expect the ECB to cut interest rates by around 130 basis points this year, with almost a 97% chance that the first cut will take place in June.

According to Daniela Hathorn, an analyst at Capital.com, the lack of clear market direction is because “we are no longer entirely sure how the data fits into the picture.”

“On the one hand, the data shows the resilience of the economy and, therefore, expected future profits should be better. But at the same time, it allows central banks to maintain restrictive policy and tight financing,” he said. she added.

The interest rate-sensitive utilities and real estate sectors led the decline on Tuesday, falling 0.32% and 0.58% respectively while healthcare stocks fell 1.31%. %.

On the other hand, the mining sector sector jumped 1.44%, as metal prices rose after a report according to which Chinese authorities plan to mobilize around 2,000 billion yuan (256.62 billion euros) to stabilize a sluggish stock market.

VALUES IN EUROPE

TF1 is leading the CAC40 at 11:50 GMT, up 9.7% after an increase in Oddo’s recommendation to “outperform”, the intermediary highlighting the improvement in the group’s prospects after the launch of the platform. streaming TF1+.

HelloFresh soars 8.9% after Morgan Stanley raised its recommendation to “overweight”.

On the downside, Logitech and Swatch dropped 6.9% and 1.9% respectively after their third quarter results.

RATE

Bond yields in the euro zone changed little on Tuesday, with a wait-and-see attitude prevailing while awaiting more information on the direction of rates.

The German ten-year yield gained 1.5 basis points (bps) to 2.305%, while the two-year yield lost 0.8 bps to 2.683%.

The American bond markets are progressing, with the ten-year bond market gaining 3.6 basis points to 4.1301%, and the two-year bond market gaining 3.4 bps to 4.4104%.

CHANGES

The dollar advances slightly (0.1%) against a basket of reference currencies, while the euro loses -0.17% to 1.0863 dollars.

OIL

Oil prices are falling slightly as investors weigh the impact of conflicting supply and demand factors, ranging from tensions in the Middle East to the impact of a cold snap on U.S. production.

Brent dropped 1.02% to $79.24 per barrel, with American light crude (West Texas Intermediate, WTI) losing 1.04% to $73.98.

(Written by Augustin Turpin, edited by Jean-Stéphane Brosse)

Copyright © 2024 Thomson Reuters