PARIS (Reuters) – Wall Street is expected to decline on Tuesday, while the European stock markets appear dispersed at mid-session in a context poor in data.

New York index futures suggest Wall Street opening lower, with the Dow Jones dropping 0.32%, while the Standard & Poor’s 500 loses 0.46% and the Nasdaq 0.70%.

In Paris, the CAC 40 advanced 0.24% to 7,787.37 points around 11:12 GMT. The Dax in Frankfurt declined by 0.21%, with the FTSE in London showing no marked direction.

The pan-European FTSEurofirst 300 index and the EuroStoxx 50 are looking for direction, with the Stoxx 600 eroding by 0.11%.

Some results liven up the indices, but movements are limited in a context poor in economic indicators, and while American operators were on vacation on Monday.

The People’s Bank of China (PBOC) decided on Tuesday to make a record cut in its prime five-year loan rate, in order to revive the real estate market and stimulate the economy, but the impact on Western markets was limited .

This week, markets will be focused on Nvidia’s figures, which will be published on Wednesday, while American stocks are driven by optimism on artificial intelligence.

A bad surprise could be enough to push back indices where the weight of very large capitalizations has become significant.

On Thursday, preliminary PMI activity indicators and final Eurozone inflation for January could help markets find direction.

VALUES TO FOLLOW IN WALL STREET

US bank Capital One on Monday announced plans to buy credit card company Discover Financial Services in an all-stock deal valued at $35.3 billion. Visa and Mastercard, competitors of Discover Financial, fell back on the market.

VALUES TO FOLLOW IN EUROPE

Air Liquide increased by 5.91% to reach a record for the session, while the industrial gas specialist reported better than expected annual operating profit and announced a doubling of its margin target for 2025.

Bic reported on Monday an increase in annual turnover, thanks to double-digit growth recorded in Latin America and sustained performance in Europe, which pushed the stock up 7.6%.

Barclays presented on Tuesday a three-year plan to revive its share price, including the return of 10 billion pounds (11.69 billion euros) to shareholders and a major restructuring plan. The title takes 5.91%.

The IHG hotel group advances 3.03% after saying on Tuesday it plans to return more than a billion dollars to its shareholders in 2024.

Superdry jumped 13.37%, an American investment fund considering a takeover of the British group in difficulty.

Grifols fell 3.05% after short seller Gotham City released a second report on the pharmaceutical group.

RATE

Yields erode in a data-poor context.

The yield on the ten-year Treasury lost 2 bps to 4.2753%, while the two-year fell by 4 bps to 4.6164%.

The German ten-year yield weakened by 3.7 bp to 2.373%, that of the two-year rate fell 2.5 bp to 2.8093%.

CHANGES

Currencies vary little in the absence of economic data.

The dollar fell 0.18% against a basket of reference currencies, the euro gained 0.19% to 1.0797 dollars, and the pound sterling was stable at 1.2598 dollars.

OIL

The barrel is crumbling, but remains close to a three-week high, while geopolitical tensions remain high and the Chinese economy could benefit from the latest support measures taken by its central bank.

Brent declined 0.89% to $82.82 per barrel, American light crude (West Texas Intermediate, WTI) dropped 0.39% to $78.88.

(Written by Corentin Chappron, edited by Sophie Louet)

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