by Diana Mandia

(Reuters) – Wall Street is expected to be directionless on Wednesday while European stock markets rise mid-session to record levels, supported by solid corporate results, during a session without major economic indicators.

New York index futures signal Wall Street opening up 0.11% for the Dow Jones and 0.09% for the Standard & Poor’s-500, while a drop of 0.02% is expected for Nasdaq.

In Paris, the CAC 40 rose 0.54% to 8,131.05, a record, around 11:57 GMT. In Frankfurt, the Dax gained 0.1% and in London, the FTSE gained 0.03%.

The pan-European FTSEurofirst 300 index gained 0.27%, the eurozone’s EuroStoxx 50 gained 0.61% and the Stoxx 600, which reached a record level of more than 507 points, gained 0.24%.

The publication of company results, considered solid, such as those of Inditex or Zalando, encourages risk-taking, reflecting investors’ confidence in the economy despite persistent inflation in the United States, and in the meantime more indicators later this week.

Investors did not question the scenario of a rate cut by the Federal Reserve (Fed) in June, despite the unexpected rebound in consumer prices in the United States in February.

In the euro zone, investors also expect the European Central Bank (ECB) to lower its rates in the coming months, especially as rising borrowing costs increasingly penalize the bloc’s economy. .

In January, industrial production in the euro zone fell by 3.2% over one month, much more than expected since analysts were expecting a decline of 1.5%.

According to Citigroup analysts, the Bank of England (BoE) should start lowering its key rates in June and no longer in August.

VALUES TO FOLLOW AT WALL STREET

VALUES IN EUROPE

On the Stoxx 600, the distribution sector was the best performer on Wednesday with an increase of 2.77%, following a 13% jump in the action of online fashion retailer Zalando, which announced a profit higher than expectations in the fourth quarter and a share buyback program.

Inditex, the owner of the ready-to-wear giant Zara, grew by 5.9% after reporting a 30.3% increase in its net profit in 2023.

E.ON takes 6% as Europe’s largest energy network operator increased its five-year investment target to 42 billion euros and provided 2024 profit forecasts that beat expectations, helping to increase the public services sector by 1.15%.

In Paris, Vallourec jumped 8.79% after the announcement by ArcelorMittal of an investment in the capital of the French manufacturer of seamless steel tubes.

BNP Paribas, which declared on Wednesday that it would increase its cost reduction efforts by 400 million euros, increased by 2.78%.

RATE

Yields in Europe, which rose on Tuesday after stronger-than-expected U.S. inflation data, were flat on Wednesday.

The yield on the German ten-year rate stands at 2.334%, and that on the two-year rate at 2.8347%.

The American bond markets are also unchanged: the ten-year bond market is moving at 4.1742%, and the two-year bond market is at 4.6114%.

CHANGES

The dollar fell slightly (-0.09%) against a basket of reference currencies, while the euro gained 0.18% to 1.0944 dollars.

OIL

Oil prices rise on Wednesday, supported by fears of supply disruptions after Ukrainian attacks on Russian refineries, signs of strong demand after an OPEC report and hopes of a Fed rate cut .

Brent rose 1.32% to $83 per barrel, with American light crude (West Texas Intermediate, WTI) increasing 1.47% to $78.7 CLc1.

(Written by Diana Mandiá, edited by Blandine Hénault)

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