PARIS (Reuters) – Wall Street is expected to be mixed, while Europe declines mid-session, with the results, data and monetary policy decisions expected in the coming days encouraging caution.
New York index futures suggest a directionless opening on Wall Street, with the Dow Jones up 0.04%, while the Standard & Poor’s 500 declines 0.01% and the Nasdaq 0.08 %.
In Paris, the CAC 40 fell by 0.83% to 7,539.26 points around 11:41 a.m. GMT. The Dax in Frankfurt strengthened by 0.24%, while the FTSE in London declined by 0.52%.
The pan-European FTSEurofirst 300 index lost 0.15%, the EuroStoxx 50 fell by 0.4% and the Stoxx 600 declined by 0.13%.
American stocks are hesitating before a burst of results this week, with figures from Morgan Stanley, American Airlines and Netflix notably expected in the coming days.
Several economic indicators, including retail sales on Thursday, which will influence the trajectory of the Federal Reserve’s rates, also encourage caution, although the latest data published suggests strong resistance in the American economy.
“A soft landing is good news for global risk assets but we believe markets are likely to remain volatile as investors face uncertainty over the economic outlook. Interest rates remain restrictive, and the US election could lead to changes in monetary policy,” notes Xavier Baraton, head of investments at HSBC Asset Management.
In the euro zone, indicators published on Tuesday suggest a slight improvement in economic conditions: industrial production surprised up year-on-year, while economic sentiment Zew surprised up slightly.
All of this data should not, however, cause the European Central Bank to hesitate, which is expected to lower its rates by 25 basis points during its next monetary policy meeting on Thursday.
Numerous results are also expected in Europe in the coming days, including figures from LVMH on Tuesday after the close.
The significant decline in oil prices is also weighing on stocks.
VALUES TO FOLLOW IN WALL STREET
Bank of America’s profit fell in the third quarter due to lower interest income from customers.
Boeing filed a declaration with the US market regulator on Tuesday that will allow it to raise up to $25 billion through various securities issues.
Johnson & Johnson on Tuesday raised its profit and revenue forecasts for 2024 after reporting strong drug sales.
OIL
The barrel is falling sharply, OPEC and the International Energy Agency having lowered their demand forecasts, while Israel would not like to hit Iranian oil production, according to information from the Washington Post.
Brent fell by 4.05% to $74.32 per barrel, American light crude (West Texas Intermediate, WTI) weakened by 4.35% to $70.62.
VALUES TO FOLLOW IN EUROPE
The energy sector and the raw materials sector showed the largest sectoral declines in the Stoxx 600, of 3.07% and 2.5% respectively.
TotalEnergies posted the biggest decline in the CAC 40, down 4.13%, under pressure from falling oil prices and after reporting on Tuesday a European refining margin indicator falling in the third quarter.
Ericsson gained 10.27% after publishing operating profit and sales above expectations on Tuesday, thanks to a rebound in demand for 5G equipment in North America.
The good performance of the Swedish group supports the telecoms compartment, which shows the largest sectoral increase in the index, 1.61%.
RATE
European rates fall before the next ECB decision.
The German ten-year yield fell by 2.9 bp to 2.247%, that of the two-year rate lost 2.1 bp to 2.239%.
The yield on the ten-year Treasury is stable at 4.0787%, while the yield on the two-year security increases by 1.5 bps to 3.956%.
CHANGES
The dollar falls before the release of retail sales on Thursday, a key indicator.
The dollar fell by 0.13% against a basket of reference currencies, the euro eroded by 0.05% to 1.0904 dollars, and the pound sterling strengthened by 0.21% to 1.3086 dollars. .
MAIN ECONOMIC INDICATOR ON THE AGENDA OF OCTOBER 15:
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
USA 12:30 p.m. Activity indicator “Empire Oct. 3.85 11.5
State”
(Written by Corentin Chappron, edited by)
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