by CORENTIN CHAPPRON

PARIS (Reuters) – Wall Street is expected to open higher on Monday while Europe is hesitant at mid-session, as investors reassess the U.S. economic outlook after weaker-than-expected data triggered a broad sell-off.

New York index futures suggest Wall Street will open in the green, with the Dow Jones up 0.62%, while the Standard & Poor’s 500 gained 0.73% and the Nasdaq 0.69%.

In Paris, the CAC 40 lost 0.22% to 7,133.34 points at around 10:54 GMT. In Frankfurt, the Dax rose 0.06% and in London, the FTSE 100 rose 0.15%.

The EuroStoxx 50 index is stable, the FTSEurofirst 300 is up 0.13% and the Stoxx 600 is up 0.15%.

The good activity figures published on Monday in the United States only temporarily relieved the markets and investor sentiment remains depressed.

“While we think recession fears may be overblown, it is not at all certain that an economic slowdown can be avoided,” observes Jon Bell, equity manager at Newton Investment Management.

In the eurozone, poor retail sales figures and higher-than-expected producer prices are contributing to concerns about the economic outlook and persistent inflation, as the European Central Bank prepares to cut rates again.

With liquidity lower in the middle of summer, investors will be paying attention to upcoming monetary policy statements and macroeconomic data expected in the coming weeks.

The Jackson Hole meeting at the end of August will be the next key meeting to determine the trajectory of rates in the United States.

VALUES TO FOLLOW IN EUROPE

Coface reported a 3.1% drop in turnover on Monday, but mentioned customer retention remaining at a high level, which pushed it up by 4.4%.

Clariane (formerly Korian) jumped 7.7% after reporting on Monday a 6.8% increase in organic revenue for the first six months of the year.

Sonova unveiled a hearing aid that uses real-time artificial intelligence on Tuesday, the first such product to hit the market, sending its stock up 5%.

Intercontinental Hotels gained 2% after reporting a 3.2% increase in revenue per available room in the second quarter on Tuesday.

Adecco climbed 2.5% thanks to the publication of an Ebita before exceptional items of 179 million euros, against a consensus provided by the group of 173 million.

RATE

U.S. bond yields are rebounding from multi-month lows in recent sessions as investors reassess the risks of a U.S. recession.

The yield on 10-year Treasuries rose 6.3 basis points to 3.8465%. The two-year rose 9.4 basis points to 3.9792%.

In Europe, the yield on the ten-year German Bund is stable at 2.173%. The two-year is up 1.7 basis points at 2.3530%.

CHANGES

The euro is down sharply against the dollar as markets worry about a slowdown in the European economy. The single currency is down 0.48% to $1.0906.

Against a basket of reference currencies, the greenback rose 0.46% after losing 1.6% over the previous two sessions.

OIL

Crude prices are rising moderately as geopolitical uncertainties take precedence over fears of a recession in the United States.

Brent gained 0.5% to $76.68 per barrel and light US crude (West Texas Intermediate, WTI) gained 0.5% to $73.35.

MORE MAJOR ECONOMIC INDICATORS EXPECTED TODAY

(Written by Corentin Chappron, edited by Blandine Hénault)

Copyright © 2024 Thomson Reuters