(Reuters) – The main European stock markets are expected to fall slightly at the opening on Monday, caution prevailing before a busy week of corporate results and macroeconomic announcements, including the expected meeting of the Federal Reserve.

Futures contracts suggest an opening down 0.11% for the Parisian CAC 40, compared to 0.10% for the FTSE in London, 0.25% for the Dax in Frankfurt, and 0.10% for the EuroStoxx 50.

The Fed will make its monetary policy decision on Wednesday and is expected to keep rates at their current levels, but investors will be attentive to the statements of the institution’s governor, Jerome Powell, in order to obtain more indications on the trajectory of the American economy.

Money markets are betting on a rate cut from June.

Several indicators, including euro zone GDP in the fourth quarter and “flash” inflation for January, and the monthly employment report in the United States, are expected this week.

The results season will also continue in Europe, with BNP Paribas, Novo Nordisk, Sanofi and Siemens publishing their quarterly accounts in the coming days.

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VALUES TO FOLLOW:

A WALL STREET

Wall Street closed in mixed order on Friday, reassured by the moderate rise in inflation in December, but weighed down by poor prospects for Intel, a heavyweight in the technology sector.

The Dow Jones index gained 0.16%, to 38,109.43 points. The broader S&P-500 lost 0.07% to 4,890.97 points. The Nasdaq Composite lost 0.36% to 15,455.36 points.

Intel plunged 11.9% to a six-week low after reporting a revenue outlook that was well below expectations.

IN ASIA

The Tokyo Stock Exchange ended higher on Monday, as rising oil prices supported the energy sector. The Nikkei index gained 0.77% to 36,026.94 points and the broader Topix gained 1.28% to 2,529.54 points.

A weaker yen supported exporters. Honda Motor and Toyota Motor posted the best performances of the Top 30 stocks, up 3.85% and 3.15%, respectively.

China’s ban on short selling was not enough to support domestic markets, with the economic situation remaining very degraded. The Shanghai SSE Composite fell by 0.92%, the CSI 300 by 0.9%.

RATE

US yields fell after the publication on Friday of the PCE inflation indicator in line with the consensus.

The ten-year Treasury yield fell 3.8 bps to 4.1219%, while the two-year rate fell 2.4 bps to 4.3407%.

The German ten-year yield dropped 3 bp to 2.267%, that of the two-year rate dropped 2.3 bp to 2.5082%.

CHANGES

The foreign exchange markets are digesting the latest American indicators, in view of the next meeting of the Federal Reserve.

The dollar gains 0.04% against a basket of reference currencies, while the euro loses 0.07% to 1.0844 dollars, and the pound sterling is stable at 1.2711 dollars.

In Asia, the yen strengthened by 0.23% to 147.82 yen per dollar, while the Australian dollar gained 0.27% to 0.6592 dollars.

OIL

Oil is up slightly after the deaths of three US soldiers in a drone attack in Jordan, and after a missile fired by the Houthis hit an oil tanker owned by broker Trafigura.

Brent advanced 0.29% to $83.79 per barrel, with American light crude (West Texas Intermediate, WTI) gaining 0.27% to $78.22.

NO ECONOMIC INDICATORS ON THE AGENDA FOR JANUARY 29

(Written by Corentin Chappron, edited by Blandine Hénault)

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