PARIS (Reuters) – European stock markets are expected to be mixed at the open on Wednesday as investors await further details on the trajectory of the U.S. economy, including the minutes of the Federal Reserve’s latest monetary policy meeting.
Futures contracts suggest a stable opening for the Paris CAC 40, against a rise of 0.07% for the FTSE in London, 0.11% for the Dax in Frankfurt, and 0.16% for the EuroStoxx 50.
Markets are positioned for a soft landing scenario, but are hesitant in the absence of new developments.
On Wednesday, revisions to US employment figures for 2024 will be released at 1400 GMT, and are expected to show a sharp decline in new hiring.
This would encourage investors to bet on a bigger rate cut than expected in September, but could revive fears of a recession in the United States.
The minutes of the Fed’s latest monetary policy meeting will be released at 1800 GMT and will shed light on the debates within the central bank.
Observers will be particularly attentive to the diagnosis made by monetary policy makers on the labour markets, while the central bank declared during its last meeting that it is now paying more attention to employment risks.
ON WALL STREET
The New York Stock Exchange ended down on Tuesday, marking a halt after several consecutive sessions in the green, in the absence of real catalysts and awaiting the Jackson Hole symposium later this week, during which the Fed chairman is due to speak.
The Dow Jones Industrial Average fell 0.15 percent, or 61.56 points, to 40,834.97. The broader S&P 500 lost 11.13 points, or 0.20 percent, to 5,597.12. The Nasdaq Composite index fell 59.83 points, or 0.33 percent, to 17,816.94.
Boeing fell 4.2% after the U.S. Aviation Administration said it was imposing a safety directive on the planemaker’s 787 Dreamliner family.
IN ASIA
The Japanese stock market declined in a wait-and-see context. The Nikkei index lost 0.29% to 37,951.80 points. The broader Topix lost 0.21% to 2,664.86 points.
Chip stocks fell, with semiconductor manufacturing equipment specialist Tokyo Electron losing 1.3 percent while rival Advantest dropped 2.2 percent.
Chinese stocks continued their decline as the economic backdrop remained weak in the world’s second-largest economy. Hong Kong’s Hang Seng Index declined 1.05%, Shanghai’s SSE Composite index fell 0.35%, and the CSI 300 fell 0.29%.
RATE
Yields are steady ahead of further economic data later in the day.
The yield on the German ten-year bond remains at 2.216%, while that of the two-year rate is stagnating at 2.409%.
The 10-year Treasury yield was flat at 3.8104%, while the two-year yield was unchanged at 3.9915%.
CHANGES
The euro is eroding against the dollar but remains close to its highest since December, supported by hopes of a rate cut across the Atlantic.
The dollar gained 0.04% against a basket of benchmark currencies, the euro eroded 0.13% to $1.1115, and the pound sterling lost 0.1% to $1.3016.
In Asia, the yen declined 0.3% to 145.69 yen per dollar, the Australian dollar rose 0.07% to 0.6746 dollars.
OILCrude inventories rose by 347,000 barrels last week, according to sources citing the American Petroleum Institute, raising fears that weakening demand is pushing down the price of a barrel.
Brent fell by 0.13% to $77.1 per barrel, while US light crude (West Texas Intermediate, WTI) weakened by 0.18% to $73.04.
(Written by Corentin Chappron, edited by Zhifan Liu)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
