by CORENTIN CHAPRON

PARIS (Reuters) – Wall Street is expected to decline on Tuesday, while the European stock markets are in disarray mid-session, with a wait-and-see attitude prevailing ahead of many indicators and events expected this week.

Futures on New York indices suggest Wall Street opening in the red, with a decline of 0.12% for the Dow Jones, 0.28% for the Standard & Poor’s 500 and 0.61% for the Nasdaq. .

In Paris, the CAC 40 is stable at 7,954.72 points around 11:55 GMT. The Dax in Frankfurt and the FTSE in London are unchanged.

The pan-European FTSEurofirst 300 index fell by 0.19%, compared to falls of 0.19% for the EuroStoxx 50 and 0.21% for the Stoxx 600.

European indices are digesting a series of activity indicators published on Tuesday, including the euro zone producer price indicator, which weakened more than expected – good news for price dynamics.

The ISM for services in the United States, which will be published at 3:00 p.m. GMT, could stimulate trade, while the tertiary sector remains one of the main factors of inflation across the Atlantic.

Several major monetary policy meetings are also expected in the coming days, including the meeting of the European Central Bank on Thursday.

In the United States, Federal Reserve Chairman Jerome Powell will speak to Congress on Wednesday and Thursday, while several sets of labor market data will be released during the week.

The Fed’s Beige Book on the state of the American economy is expected on Wednesday.

Adding to the wait-and-see attitude, the Chinese government did not announce new economic recovery measures on Tuesday, even though the Prime Minister established an ambitious GDP growth target of around 5% for 2024.

VALUES TO FOLLOW IN WALL STREET

Apple’s iPhone sales in China fell 24% year-on-year in the first six weeks of 2024, according to research firm Counterpoint.

The Federal Aviation Administration said its audit of 737 MAX production conducted at Boeing and supplier Spirit Aerosystems found numerous quality control flaws.

VALUES TO FOLLOW IN EUROPE

Thales climbs 8.17% and hits a historic high after revealing an operating result for 2023 of more than two billion euros, a first since 2019 and the COVID health crisis.

Euroapi fell by 10.26%, after Deutsche Bank lowered its recommendation to “sell” from “hold”, the intermediary regretting the lack of details on the update of the group’s strategy last week.

Sandoz fell 4.58%, the Swiss manufacturer of generic drugs and biosimilars having announced the resignation of its financial director, Colin Bond.

Traton announced on Tuesday that it expects an adjusted operational return on sales for 2024 generally at the same level as that of the previous year after having almost doubled its annual operating profit, which increases the stock by 6.73%.

Zealand Pharma gains 5.07% after Berenberg initiated coverage of the stock with a “buy” recommendation.

RATE

Yields are falling in Europe after a falling producer price indicator.

The German ten-year yield weakened by 2.9 bp to 2.368%, that of the two-year rate lost 1.3 bp to 2.8816%.

The yield on the ten-year Treasury lost 3.1 bps to 4.1876%, while the two-year fell by 2.5 bps to 4.5829%.

CHANGES

The dollar is stable against a basket of reference currencies in a wait-and-see market. The euro is unchanged at 1.085 dollars and the pound sterling loses 0.05% to 1.2684 dollars, before the presentation of the British government’s budget on Wednesday.

OIL

The barrel is falling amid concerns about Chinese economic growth in the absence of announcements of major reforms.

Brent declined 0.28% to $82.57 per barrel, American light crude (West Texas Intermediate, WTI) dropped 0.46% to $78.38.

(Written by Corentin Chappron, edited by Blandine Hénault)

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