by Claude Chendjou

PARIS (Reuters) – The main European stock markets are expected on a hesitant note on Wednesday before the publication of several macroeconomic indicators, including retail sales in the euro zone and statistics on the American labor market.

According to the first available indications, the Parisian CAC 40 should gain 0.06% at the opening, the Dax in Frankfurt 0.08% and the FTSE 100 in London 0.09%. The EuroStoxx 50 index is expected to increase by 0.02%.

The trend should be generally cautious as the market becomes aware at 10:00 GMT of data on retail sales in the euro zone for the month of January. This statistic is likely to provide indications on the evolution of the situation in the monetary bloc while the final monthly PMI figures showed on Tuesday that private sector activity in the euro zone was on the verge of returning to growth.

In the United States, while waiting for the official monthly employment report to be published on Friday, investors will analyze the figures from the ADP survey and the Jolts report on job offers.

They will also monitor the publication of the Beige Book of the American Federal Reserve, which serves as a working basis for its monetary policy committee (FOMC) while its president, Jerome Powell, must speak to Congress today.

A WALL STREET

The New York Stock Exchange ended sharply lower on Tuesday, under the effect of the decline in technology stocks, notably Apple.

The Dow Jones index fell 1.04%, or 404.64 points, to 38,585.19 points.

The broader S&P-500 lost 52.3 points, or 1.02%, to 5,078.65 points.

The Nasdaq Composite fell 267.92 points (1.65%) to 15,939.59 points.

Data published during the day paint a mixed picture of the American economy: if growth in service sector activity slowed in February, against a backdrop of falling unemployment, the new orders index reached a new high of six months, suggesting underlying strength in the sector.

Some analysts see today’s 1.2% decline in the technology sector as profit-taking following the sector’s recent gains and its 56% jump last year.

Apple lost 2.8%, with a research firm reporting that iPhone sales in China were down 24% year-over-year in the first six weeks of the year.

Tesla fell 3.9% following a fire in its European “gigafactory” near Berlin where production was suspended.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei ended down 0.02% at 40,090.78 points, the second consecutive session in the red against a backdrop of profit taking after the historic peak of the index above 40,000 points on Monday . The broader Topix lost 0.39% to 2,730.67 points.

The MSCI index bringing together stocks from Asia and the Pacific (excluding Japan), in decline for a good part of the session, turned around to gain 0.46%.

In China, the Shanghai SSE Composite fell by 0.1% and the CSI 300 fell by 0.24%, the absence of major recovery measures from Beijing continuing to weigh on investor morale.

VALUES TO FOLLOW IN EUROPE:

EXCHANGES/RATES

The dollar fell slightly (-0.02%) against a basket of reference currencies.

The euro is trading unchanged at $1.0855 and the pound sterling at $1.2701 (-0.02%).

The yield on ten-year US Treasury bonds is practically stable, at 4.1564%, after falling the day before to a one-month low, at 4.112%.

OIL

The oil market is rebounding slightly with signs of tightening supply, Saudi Arabia having notably raised its crude prices to Asia.

Brent advanced 0.29% to $82.28 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.29% to $78.38.

(Written by Claude Chendjou, edited by Bertrand Boucey)

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