by Diana Mandia

(Reuters) – Wall Street is expected to rise and European stocks are down mid-session on Monday, with caution being called for after a series of gloomy corporate results and forecasts.

The latest Chinese economic figures have also disappointed and the assassination attempt on Donald Trump on Sunday adds to the uncertainty.

New York index futures point to a 0.54% opening gain for the Dow Jones, 0.45% for the Standard & Poor’s 500 and 0.56% for the Nasdaq.

In Paris, the CAC 40 lost 0.71% to 7,669.75 points at around 11:24 GMT. In Frankfurt, the Dax fell by 0.43% and in London, the FTSE 100 lost 0.34%.

The EuroStoxx 50 index is down 0.53%, the FTSEurofirst 300 by 0.40% and the Stoxx 600 by 0.45%.

European stock markets are opting for caution after two consecutive weeks of gains, as the earnings season in Europe kicked off with mixed figures and forecasts from the luxury sector.

Watchmaker Swatch reported a sharp drop in first-half sales on Monday as demand in China collapsed, while British brand Burberry issued a profit warning.

The sector is also being negatively impacted by weaker-than-expected second-quarter Chinese economic growth figures, with the real estate crisis and a weak job market weighing on domestic demand.

“The bad surprise comes, once again, from domestic demand, and in particular from consumption. Retail sales grew by only 2% in June, the weakest growth since the end of the Zero-Covid policy at the end of 2022,” LBP AM reported in a note.

In France, the political impasse persists, with the three blocs resulting from the legislative elections currently unable to find a majority a few days before the opening of the 17th legislature next Thursday and in a context of concern over public finances.

Caution is also warranted ahead of the European Central Bank’s (ECB) meeting on Thursday, although it is almost certain that it will hold rates steady in July before a further reduction is considered likely in September.

In the United States, Federal Reserve Chairman Jerome Powell is due to speak on Monday, as markets “digest” the fallout from the assassination attempt on Donald Trump.

Investors now see a more likely outcome for the former Republican president on Nov. 5, betting on tough trade policies and looser regulation on issues ranging from climate change to cryptocurrencies.

“Trump as president is probably a positive for risk…we should see S&P500 futures and the dollar push higher today,” said Chris Weston, head of research at Pepperstone.

The Republican Party convention is expected to formalize Donald Trump’s candidacy this week.

VALUES TO FOLLOW ON WALL STREET

Google parent Alphabet is in advanced negotiations to acquire cybersecurity startup Wiz for about $23 billion, a person familiar with the matter said Sunday, a deal that would be the tech giant’s largest acquisition ever.

VALUES IN EUROPE

Burberry fell 16% and watchmaker Swatch fell 10% after their updates, dragging the luxury sector down with them: Kering fell 3.6%, Richemont declined 3.6%, while LVMH and Hermès lost 1.9% and 1.2% respectively.

Airbus