by Blandine Henault

PARIS (Reuters) – The main European stock markets are expected to be on a cautious note on Wednesday in the wake of Wall Street’s decline the day before and before the highly anticipated publications in the evening of Nvidia’s results and the minutes of the last policy meeting monetary policy of the American Federal Reserve (Fed).

According to the first available indications, the Parisian CAC 40 would be unchanged at the opening. Futures contracts predict the same stability (-0.01%) for the Dax in Frankfurt, a decline of 0.1% for the FTSE in London and 0.06% for the Stoxx 600.

Tuesday evening, Wall Street ended in the red with the decline of 4.35% in Nvidia, whose quarterly results are expected after the close.

Investors are wondering whether the chipmaker’s performance will justify its very high valuation and continue to fuel enthusiasm around stocks linked to artificial intelligence (AI).

Another brake on the stock markets is the decline in expectations for an upcoming monetary easing by the Fed after the data on inflation in the United States published last week.

The publication of the “minutes” of the Fed’s end-of-January meeting, at 7:00 p.m. GMT, could give indications to market operators who are now expecting a cumulative drop of 92 basis points in “fed funds” this year, far from the 150 points anticipated at the start of the year.

VALUES TO FOLLOW:

HSBC fell by more than 3% on the Hong Kong Stock Exchange after revealing a record annual profit but below expectations due to a depreciation of three billion dollars recorded on the participation of the British bank, very exposed to Asia , in the capital of a Chinese banking establishment.

According to the Bloomberg agency, Saint-Gobain is in preliminary discussions with a view to acquiring its Australian competitor CSR, whose listing was suspended after a jump of 17.4%.

A WALL STREET

On Tuesday, the Dow Jones index lost 0.17% to 38,568.00 points, as Walmart’s progress helped limit losses.

The broader S&P-500 lost 0.60% to 4,975.51 points and the Nasdaq Composite fell 0.92% to 15,630.78 points.

IN ASIA

The Tokyo Stock Exchange ended down 0.26% in the wake of Wall Street and caution around Nvidia.

After a timid start to the session, Chinese stock markets are climbing, finally reacting to the efforts of the Chinese authorities to support the economy.

The CSI 300 climbs 2.23% and the Hang Seng of the Hong Kong Stock Exchange gains 2.31%.

RATES/EXCHANGES

The dollar, like American bond yields, is changing little, after their rise since the start of the month, favored by the decline in expectations of Fed rate cuts.

The ten-year Treasuries rate is almost unchanged at 4.2753% while the dollar falls by 0.08% against a basket of reference currencies.

The euro took advantage of this to return above 1.08 dollars.

OIL

Crude prices rose on Wednesday against a backdrop of tensions in the Red Sea after repeated attacks on commercial ships.

A barrel of Brent from the North Sea gained 0.29% to 82.58 dollars and that of American light crude (WTI) gained 0.27% to 77.25 dollars.

(Written by Blandine Hénault, edited by Jean-Stéphane Brosse)

Copyright © 2024 Thomson Reuters