(Reuters) – The main European stock markets are expected to rise at the opening on Wednesday, before the publication of PMI activity indicators and on the eve of the meeting of the European Central Bank.

According to the first available indications, the Parisian CAC 40 is up 0.52% at the opening. Futures contracts on the FTSE in London suggest an opening advance of 0.21%, compared to 0.61% for the Dax in Frankfurt, and 0.78% for the EuroStoxx 50.

The flash PMI activity indicators for January will be published from 08:15 GMT for France, Germany and the euro zone.

While the economy has slowed in the euro zone over the last two quarters, the indicator will make it possible to gauge a possible rebound in activity.

The composite PMI indicator is thus expected below the 50 mark, which separates growth from contraction in activity, but a slight improvement compared to the December figure.

These indicators are all the more important as they will be the last data to be published before the ECB meeting on Thursday.

The central bank is expected to keep rates at their current levels, and could give more guidance on the bloc’s economic outlook, as markets have revised downward their expectations for monetary easing in 2024.

Fourth-quarter US GDP and PCE inflation are also due on Thursday and Friday, while the earnings season continues across the Atlantic: 80 of the 500 companies making up the S&P 500 publish their results this week, including Tesla on Wednesday.

A WALL STREET

The New York Stock Exchange ended mixed on Tuesday, with the S&P-500 hitting a new closing record for the third consecutive session, as investors factored in a mix of mixed quarterly results.

The Dow Jones index lost 0.25% to 37,905.45 points. The broader S&P-500 gained 0.29% to 4,864.59 points. The Nasdaq Composite advanced 0.43% to 15,425.94 points.

IN ASIA

The Tokyo Stock Exchange ended lower on Wednesday, under pressure from profit-taking. The Nikkei index lost 0.80% to 36,226.48 points and the broader Topix lost 0.52% to 2,528.81 points.

The interest-rate-sensitive real estate sector index fell 2.84 percent, among the worst performers among the sectors on the Tokyo Stock Exchange. Real estate companies Sumitomo Realty & Development and Mitsui Fudosan lost 3.46% and 4.1%, respectively.

Chinese markets are progressing cautiously, with investors remaining cautious about possible new support measures from the Chinese authorities for local markets. The Shanghai SSE Composite takes 0.37%, the CSI 300 0.17%, the Hong Kong Hang Seng index 1.35%.

RATE

US yields are falling slightly in a wait-and-see environment.

The ten-year Treasury yield decreased by 2 basis points to 4.1223%, while the two-year rate fell by 1.6 bps to 4.3324%.

CHANGES

The yen strengthens after the Bank of Japan’s decision, with markets judging that the central bank has adopted a restrictive bias.

The dollar declined by 0.17% against a basket of reference currencies, while the euro gained 0.1% to 1.0862 dollars, and the pound sterling 0.1% to 1.27 dollars.

In Asia, the yen strengthened by 0.33% to 147.87 yen per dollar, while the Australian dollar eroded by 0.06% to 0.6574 dollars.

OIL

Oil is rising moderately, shared between the impact of geopolitical tensions on supply and fears about global demand.

Brent advanced 0.13% to $79.65 per barrel, with American light crude (West Texas Intermediate, WTI) gaining 0.15% to $74.48.

(Written by Corentin Chappron, edited by Jean-Stéphane Brosse)

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