by Augustin Turpin
(Reuters) – Wall Street is expected to be mixed on Tuesday and European stock markets are trading in the red at mid-session, a few hours before the publication of producer prices for July in the United States, which observers of the American economy will watch closely to understand if the price dynamics are coming back under the control of the Federal Reserve.
New York index futures indicate a 0.24% drop in Wall Street trading for the Dow Jones, an almost stable 0.1% drop in the Standard & Poor’s 500 and a 0.19% increase in the Nasdaq.
In Paris, the CAC 40 lost 0.34% to 7,225.95 at around 10:37 GMT. In Frankfurt, the Dax fell by 0.32% and in London, the FTSE lost 0.26%.
The pan-European FTSEurofirst 300 index is down 0.25%, the eurozone’s EuroStoxx 50 0.27% and the Stoxx 600 0.29%.
Markets are focused on Tuesday on US producer price data, due at 12:30 GMT, which will give a first idea of ​​the persistence of price pressures in the United States.
“You could say stocks are still in recovery mode after last week’s shocks,” said Chris Weston, head of research at Pepperstone, who expects trading to be limited until markets take in key economic data due this week.
“The assessment of American growth is still the main game in town,” he added.
The indicator will be all the more important as it will help operators position themselves for the publication of CPI inflation on Wednesday, the most anticipated indicator this week and capable of causing the markets to react brutally, which are betting on rate cuts by the Fed as early as September.
Thursday’s release of new jobless claims will also be closely watched, as investors worry about the slowing U.S. economy and will be watching for any further signs of weakness in labor markets.
Raphael Bostic, a member of the Fed’s Monetary Policy Committee, is also expected to speak on Tuesday and could give more indications of his perception of activity across the Atlantic.
VALUES IN EUROPE
Valneva jumped 4.88% after reporting a year-on-year decline in revenue but a profit, compared with a loss a year ago.
HelloFresh reported second-quarter core earnings that beat expectations on Tuesday, rising 10.15%.
RATE
Eurozone bond yields are little changed ahead of the release of US producer prices and CPI inflation on Wednesday.
The yield on the German ten-year bond fell by 1.4 basis points (bp) to 2.2120%, while that of the two-year rate lost 2.6 bp to 2.3700%.
US bond markets are weak, with the 10-year Treasury up 0.4bp to 3.9131%.
CHANGES
The dollar is almost stable (0.07%) against a basket of reference currencies, while the euro loses 0.35% to 1.0923 dollars.
OIL
Oil prices are falling as the International Energy Agency (IEA) lowered its demand growth outlook for 2025 on Tuesday, while OPEC did the same on Monday for 2024, with both organizations citing a slowdown in Chinese demand.
Brent fell 0.3% to $82.05 a barrel, while US light crude (West Texas Intermediate, WTI) lost 0.3% to $79.84.
(Written by Augustin Turpin, edited by Kate Entringer)
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