PARIS (Reuters) – The main European stock markets fell on Tuesday morning in a context of caution before the monthly figures for American inflation, a statistic monitored by the Federal Reserve (Fed) to determine the evolution of interest rates.

In Paris, the CAC 40 lost 0.31% to 7,665.73 points around 08:45 GMT. In Frankfurt, the Dax fell by 0.58% and in London, the FTSE 100 dropped 0.21%, penalized in particular by an indicator showing that wage growth in the United Kingdom slowed over the last three months of 2023 to a slower pace than expected.

The EuroStoxx 50 index lost 0.69%, the FTSEurofirst 300 0.32% and the Stoxx 600 0.34%.

Futures contracts on Wall Street forecast a drop of 0.09% for the Dow Jones, 0.16% for the Standard & Poor’s 500 and 0.20% for the Nasdaq the day after a session in scattered order where this latter index briefly exceeded its November 2021 closing record during the session.

Investors are opting for caution ahead of the publication of the Consumer Price Index (CPI) in the United States for the month of January, scheduled for 1:30 p.m. GMT. The Reuters consensus expects an unchanged figure on a monthly basis (+0.2%) and a deceleration on an annual basis (+2.9%), but some experts, like Charu Chanana of Saxo, do not rule out not a surprise showing an acceleration in price dynamics.

The markets have virtually ruled out any chance of a Fed rate cut in March, with traders now counting with a 13% probability of monetary easing at this deadline, compared to 77% a month earlier, according to the FedWatch barometer. CME Group.

“It is only a matter of time before the Fed lowers its rates and we believe that this should start around the middle of this year,” explains Vasu Menon, head of investment strategy at OCBC Bank. .

On the bond market, the yield on ten-year American bonds increased slightly, to 4.1832%.

In addition to questions about inflation, quarterly publications from companies in Europe also drive discussions, pending those in the United States from Coca-Cola and Hasbro.

Michelin jumped 4.51% after the announcement of a new share buyback plan and the publication of a record annual sector operating profit of 3.57 billion euros, higher than analysts’ forecasts.

The tour operator TUI gained 2.84% thanks to a surprise operating profit for its first fiscal quarter.

Thyssenkrupp Nucera gained 1.67%, as the hydrogen joint venture between Thyssenkrupp and De Nora reported quarterly sales up more than a third thanks to solid demand for its electrolyzer technology.

On the downside, Randstad lost 0.94% after the publication of quarterly Ebita down 24%.

(Writing by Claude Chendjou, edited by Kate Entringer)

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