by Pauline Foret

(Reuters) – Wall Street is expected to remain uncertain on Tuesday as European stock markets seek direction mid-session, continuing to digest the publication of reassuring economic indicators in the United States.

New York index futures pointed to a slightly higher opening for Wall Street, with the Dow Jones pointing to a flat opening but the Standard & Poor’s 500 up 0.08% and the Nasdaq up 0.17%.

In Paris, the CAC 40 gained 0.11% to 7,510.44 points at around 09:45 GMT. In Frankfurt, the Dax advanced 0.03% and in London, the FTSE lost 0.69%.

The pan-European FTSEurofirst 300 index gained 0.02% and the Eurozone’s EuroStoxx 50 gained 0.22%, while the Stoxx 600 fell slightly by 0.02%.

European investors are digesting the release of final eurozone inflation figures for July, which came in line with expectations.

The New York Stock Exchange closed higher on Monday as investors looked ahead to the Democratic National Convention and the opening of the annual Jackson Hole Symposium on Thursday.

Federal Reserve Chairman Jerome Powell is scheduled to speak there on Friday after reassuring economic data eased fears of an imminent recession in the world’s largest economy.

“I think (Jerome Powell) is going to repeat some of the Fed’s language, that they’re a little more comfortable with inflation moving closer to target… and that will be interpreted by markets as a green light for a rate cut in September,” said Paul Nolte, senior wealth management advisor and market strategist at Murphy and Sylvest in Elmhurst, Illinois.

The Democratic National Convention, which opens Monday in Chicago, could fuel market volatility, already heightened by low trading volumes at the end of the summer.

Waiting and caution remain the order of the day while awaiting the PMI indicators, which will be published this Thursday, and news of monetary policy across the Atlantic.

VALUES TO FOLLOW ON WALL STREET

Home improvement and gardening retailer Lowe’s is expected to report results later today.

Edgar Bronfman Jr. announced Monday night that he has made an offer of approximately $4.3 billion to acquire National Amusements, the parent company of Paramount Global.

VALUES IN EUROPE

In Europe, Voltalia collapsed by almost 14% on the Paris Stock Exchange after declaring that a restriction on production had been imposed on it by the Brazilian network operator, which could have an impact on its 2024 EBITDA.

RATE

The lack of indicators on the agenda is causing the bond markets to hesitate.

The ten-year Treasury yield was stable at 3.8730%, while the two-year yield was unchanged at 4.0593%.

The yield on the ten-year German Bund fell 1.5 basis points to 2.2400%, while the two-year yield lost 1.2 bps to 2.4320%.

CHANGES

In the absence of major indicators, currency markets are calm, with the dollar nevertheless reaching its lowest level in seven months under pressure from expectations of a Fed rate cut.

The dollar lost 0.04% against a basket of benchmark currencies, while the euro lost 0.1% to $1.1074.

The pound sterling, meanwhile, gained 0.12% against the dollar and 0.16% against the euro.

OIL

Oil prices slipped again on Tuesday as Israel considered accepting a proposal that would remove obstacles to a ceasefire in Gaza. Economic weakness in China, where the central bank left interest rates unchanged on Tuesday, also weighed on sentiment.

Brent lost 0.55% to $77.23 per barrel, while American light crude (West Texas Intermediate, WTI) fell 1.02% to $73.61.

(Written by Pauline Foret, edited by Augustin Turpin)

Copyright © 2024 Thomson Reuters