by Claude Chendjou

PARIS (Reuters) – The main European stock markets are expected to rebound slightly on Tuesday following concerns over the results of the European elections and the dissolution of the National Assembly in France as the American Federal Reserve (Fed) begins a policy meeting two-day monetary policy.

According to the first available indications, the Parisian CAC 40 should rebound by 0.37% at the opening the day after a drop of 1.35% linked to the shock of the political earthquake in France caused by the European elections. The Dax in Frankfurt could advance by 0.26%, while the FTSE 100 in London should gain 0.37%. The EuroStoxx 50 index is expected to increase by 0.420%.

The caution observed in Europe since Monday following the results of the European elections marked by a breakthrough by far-right parties and by a political crisis in France should continue, limiting the potential for a rebound.

Investors are also on the lookout for signs on the evolution of interest rates since the robustness of the monthly employment figures in the United States, published on Friday, sowed doubts about a drop in labor costs. loan in September. If the Fed should opt for the status quo on Wednesday, the words of Jerome Powell, its president, will be particularly scrutinized while the same day the consumer price index across the Atlantic will be published. The US central bank will also publish its economic projections.

“This is an important week for the market in terms of comments and messages from the Federal Reserve,” said Quincy Krosby, chief strategist at LPL Financial.

A WALL STREET

The New York Stock Exchange ended up on Monday with notably a record in the Nasdaq and S&P 500 indices, driven by semiconductor groups (+1.4%), including Nvidia.

The Dow Jones index gained 0.2% to 38,868.04 points, the Standard & Poor’s 500 0.3% to 5,360.79 points and the Nasdaq Composite 0.4% to 17,192.529 points.

Nvidia, whose share price was divided by ten, making the title more accessible to small holders, advanced 0.7%.

On the downside, Apple lost 1.91%, investors not having been convinced by the Apple brand’s announcements on artificial intelligence (AI).

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index ended with a gain of 0.25% to 39,134.79 points, after hitting a three-week high, supported by values ​​linked to semiconductors. The broader Topix, on the other hand, lost 0.2% to 2,776.8 points.

The MSCI index bringing together stocks from Asia and the Pacific (excluding Japan) lost 0.50%.

In China, where the markets were closed on Monday for a public holiday, the Shanghai SSE Composite fell by 0.55% and the CSI 300 fell by 0.66%, the indices reacting late to the American employment report published on Friday. The most affected sectors are basic consumer goods (-2.17%) and non-ferrous metals (-2.28%).

VALUES TO FOLLOW IN EUROPE:

CHANGES

Ahead of the release of US inflation data and the Fed’s new economic forecasts, the dollar is close to a one-month high against the euro on Tuesday and a one-week high against the yen. The greenback fell slightly (-0.01%) against a basket of reference currencies after reaching 105.39 points, a first since May 14.

The euro is trading at 1.0767 dollars (+0.04%).

The pound sterling traded at $1.2717 (-0.1%) after new data showing a slowdown in the UK jobs market despite strong wage growth.

RATE

The yield on ten-year US Treasury bonds fell by 2.2 basis points, to 4.4473%, the day after an increase of 4.1 points.

That of the German Bund of the same maturity is stable, at 2.671%, after an increase of 5.6 points the day before.

OIL

The oil market is rising slightly as investors await key data from the United States to gauge the trajectory of inflation and its impact on fuel demand.

Brent nibbles 0.06% to $81.68 per barrel and American light crude (West Texas Intermediate, WTI) advances 0.12% to $77.83.

(Written by Claude Chendjou)

Copyright © 2024 Thomson Reuters