by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to see no big change at the opening on Wednesday and the European stock markets are showing timid variations at mid-session, the session being marked by near stability in bond yields and a burst of contrasting results from businesses.
Futures on New York indices signal a Wall Street opening down 0.08% for the Dow Jones, 0.02% for the Standard & Poor’s 500 but an increase of 0.12% for the Nasdaq.
In Paris, the CAC 40 fell by 0.21% to 7,623.09 points around 12:00 GMT. In Frankfurt, the Dax lost 0.29% and in London, the FTSE lost 0.39%.
The pan-European FTSEurofirst 300 index fell by 0.23%, the Eurozone EuroStoxx 50 by 0.19% and the Stoxx 600 by 0.22%.
The continued lull in the European bond compartment where the ten-year German Bund yield gained 18 basis points between Friday and Monday, before stabilizing on Tuesday and Wednesday at around 2.30%, limits the pressure on the actions.
The Stoxx 600 is mainly driven by company publications, the increase in the automobile sector (+1.4%) following good results from Ford offsetting the decline in the health sectors (-0.6% ) and energy (-0.88%).
Ford jumped 6% in pre-market trading after the automaker published quarterly sales that were better than expected and announced the payment of an additional dividend to shareholders.
Snap collapses 31.3% in pre-market trading after publishing quarterly revenue below forecasts.
VALUES IN EUROPE
TotalEnergies lost 3.16% despite a record group net profit of $21 billion for 2023. The French giant, however, recorded an adjusted net profit below consensus over the October-December period, in a context of decline. of the price of hydrocarbons.
Norwegian oil and gas producer Equinor fell 5.89% after announcing a reduction of three billion dollars this year in sums paid to shareholders against a backdrop of slowing growth in its quarterly profit.
Vestas, the world’s largest manufacturer of wind turbines, on the other hand climbed 6.24% thanks to an adjusted operating profit above expectations for the fourth quarter.
Stellantis, up 2.4%, set a session record at 22.07 euros, while Renault rose 2.54%.
In the other compartments, the Danish brewer Carlsberg (5.13%) was driven by better than expected annual turnover, while on the downside, the jeweler Pandora lost 1.26% due to lower than expected sales in China. .
Akzo Nobel is in the red (-0.58%), the Dutch manufacturer of paints and coatings having been affected by hyperinflation in Turkey and Argentina, while Sainsbury’s gives up 3.66% after an update of its plan. economies and Deutsche Post -4.02% after the announcement of the reduction of Germany’s participation in the courier and parcel delivery group.
RATE
The ten-year German Bund yield fell slightly to 2.308%, as did the two-year yield which stood at 2.6132%, after their recent rise.
The sharper than expected drop in German industrial production in December (-1.6% compared to November) also tempers the comments of Isabel Schnabel, member of the Governing Council of the European Central Bank, who called, in the Financial Times, to be “patient” regarding the expected reduction in rates by the markets.
“We are a bit in wait-and-see mode at the moment (…) I think the duration will probably vary in the coming weeks. It will depend on communication (from central bankers) and data,” notes Emmanouil Karimalis, rates strategist. at UBS.
The yield on ten-year US Treasury bonds advances by three basis points, to 4.1288%, pending planned interventions by several officials of the US Federal Reserve (Fed) such as Adriana Kugler, Michelle Bowman , Thomas Barkin and even Susan Collins.
CHANGES
The dollar is coming back from a peak of almost three months, losing 0.16% against the euro which is trading at 1.0771.
Against a basket of reference currencies, the greenback fell by (-0.086%).
The pound sterling stands at $1.2631, up 0.27%.
OIL
The oil market rises for the third consecutive session thanks to lower-than-expected US crude stocks and a drop in production growth forecasts in the United States: Brent gains 0.75% to $79.18 per barrel and light American crude (West Texas Intermediate, WTI) advanced 0.80% to $73.90.
(Writing by Claude Chendjou, edited by Kate Entringer)
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