by Claude Chendjou

PARIS (Reuters) – The main European stock markets are expected on Tuesday without clear direction in a context of wait-and-see before the publication of American inflation figures and announcements from the European Central Bank (ECB).

According to the first available indications, the Parisian CAC 40 should lose 0.10% at the opening. The Dax in Frankfurt could fall by 0.16%, while the FTSE 100 in London is expected to gain 0.05%. The EuroStoxx 50 index is expected to fall by 0.20%.

Cyclical values, notably basic resources, which allowed equity markets in Europe to post gains on Monday following stronger-than-expected industrial production in Germany in February, should limit the potential decline on Tuesday.

The prospects of a rebound in the global manufacturing sector, led by China, are driving metals on Tuesday: in Shanghai, copper futures rose 1% to their highest level in two years, while zinc hit a five-month high and aluminum a 22-month high.

“It’s very much a bet on China,” says Vishnu Varathan, director of economics at Mizuho Bank in Singapore.

Beyond the improvement in raw materials, investors are especially preparing for announcements from the ECB which meets on Thursday as doubts have begun to emerge about the timetable for the expected drop in key rates.

These doubts are fueled by the comments of certain officials of the American Federal Reserve such as Neel Kashkari and data showing the strength of the American economy. The publication of consumer price figures in the United States on Wednesday will provide more information on the evolution of inflation.

The week will also be marked by the kickoff of the quarterly results of companies, notably American banks, while in Europe, Atos and Airbus are scheduled in the day’s agenda.

A WALL STREET

The New York Stock Exchange ended in disarray on Monday, with investors having played the card of caution before key meetings.

The Dow Jones index fell 0.03%, or 11.24 points, to 38,892.8 points.

The broader S&P-500 lost 1.95 points, or 0.04%, to 5,202.39 points.

The Nasdaq Composite advanced 3.63 points (+0.02%) to 16,252.15 points.

In terms of values, we will note the 4.81% increase recorded by Tesla after Elon Musk announced that he would unveil his Robotaxi, an autonomous vehicle, on August 8.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index advanced 0.9% to 39,700.65 points, supported by stocks linked to semiconductors such as Tokyo Electron (+3.19%) and Advantest (+1.04%). , as well as the weakness of the yen. The broader Topix rose 0.84% ​​to 2,751.14 points as the close approached.

The MSCI index bringing together stocks from Asia and the Pacific (excluding Japan) gained 0.2%.

In China, the Shanghai SSE Composite fell by 0.36% and the CSI 300 fell by 0.37%, with investors awaiting the publication next week of gross domestic product data for the first quarter and activity indicators.

VALUES TO FOLLOW IN EUROPE:

EXCHANGES/RATES

The dollar, close to a two-week low against a basket of reference currencies, is stable (+0.04%), despite the rise in bond yields.

The euro varies little (-0.03%), at 1.0855 dollars, while the pound sterling trades at 1.2655 dollars (+0.02%).

The yield on ten-year US Treasury bonds, which reached its highest since the start of the year on Monday at 4.46%, fell slightly on Tuesday, by around one basis point, to 4.4118%.

OIL

Oil prices started to rise again on Tuesday, with hopes of a truce between Israel and Hamas dwindling despite the continuation of talks in Cairo. The Palestinian group said Monday night it criticized Israel’s proposals as a date for launching a ground invasion of the city of Rafah was set by Israeli Prime Minister Benjamin Netanyahu.

Brent rose 0.20% to $90.56 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.14% to $86.55.

(Written by Claude Chendjou)

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