by CORENTIN CHAPRON

PARIS (Reuters) – The main European stock markets are expected to be mixed at the opening on Tuesday, before a burst of company results on both sides of the Atlantic.

Futures contracts suggest an opening down 0.02% for the Parisian CAC 40, against a decline of 0.33% for the FTSE in London, a surge of 0.33% for the Dax in Frankfurt, and a EuroStoxx 50 stable.

In Europe, technology giant SAP reported better-than-consensus results on Monday, which could support the technology sector.

Many more results will be released in the coming days and will help guide the market.

Deutsche Bank, Lloyds and Barclays are expected this week, while figures from Vivendi and L’Oréal will attract the attention of French investors on Tuesday.

In the United States, figures from General Motors, Texas Instruments, Verizon, Lockheed Martin and 3M are expected during the day.

The preliminary PMIs for October scheduled for Thursday will liven up discussions and shed light on the European economic trajectory. Until then, few indicators are expected and the markets should focus on the results as well as the American presidential election on November 5.

In fact, concerns are increasing: gold is hitting a record high, while sovereign yields and stocks are falling against a backdrop of uncertainty over the US budgetary trajectory.

Tuesday will also begin in Washington the annual meetings of the World Bank and the International Monetary Fund. Many monetary policy makers are expected to speak on this occasion, including Christine Lagarde, President of the European Central Bank.

A WALL STREET

The New York Stock Exchange ended in disorganized order on Monday, investors having played the card of caution before the publication of a series of quarterly which will allow them to judge the capacity of the stock markets to maintain their upward momentum.

The Dow Jones index lost 0.80%, or 344.31 points, to 42,931.60 points. The broader Standard & Poor’s 500 lost 10.69 points, or 0.18% to 5,853.98 points. The Nasdaq Composite advanced 50.45 points, or 0.27%, to 18,540.005 points.

Boeing gained 3.10% after the publication of press information reporting that a wage agreement likely to end the long strike was within reach.

IN ASIA

The Tokyo Stock Exchange ended in the red, as investors worried that the ruling Liberal Democratic Party could lose its majority in the House of Representatives during the October 27 legislative elections. The Nikkei index lost 1.39% on Tuesday to 38,411.96 points. The broader Topix lost 1.06% to 2,651.47 points.

Chipmaking equipment maker Tokyo Electron fell 2.9%, chip test equipment maker Advantest eroded 2.5%.

Chinese markets are moving forward as investors digest the latest stimulus measures taken by Beijing. The Hong Kong Hang Seng index increased by 0.32%, the Shanghai SSE Composite strengthened by 0.48%, the CSI 300 recorded an increase of 0.45%.

RATE

US yields are rising as the US election approaches, even though neither candidate has proposed a credible plan to reduce the US deficit.

The yield on the ten-year Treasury increased by 3.4 bps to 4.2156%, while the yield on the two-year security increased by 2 bps to 4.0452%.

The yield on the German ten-year rose by 2 bp to 2.299%, that of the two-year rate rose by 0.8 bp to 2.186%.

CHANGES

Foreign exchange markets are calm in the absence of a catalyst.

In Asia, the yen advanced 0.06% to 150.74 yen per dollar, the Australian dollar rose 0.45% to 0.6688 dollars.

The dollar fell by 0.07% against a basket of reference currencies, the euro rose by 0.05% to $1.082, and the pound sterling strengthened by 0.16% to $1.3005.

OIL

Crude prices are falling, as geopolitical tensions appear to be easing in the Middle East while markets digest the implications of the latest support measures for the Chinese economy.

Brent fell by 0.43% to $73.97 per barrel and American light crude (West Texas Intermediate, WTI) weakened by 0.3% to $70.35.

NO ECONOMIC INDICATORS ON THE AGENDA FOR OCTOBER 22

(Written by Corentin Chappron, edited by Blandine Hénault)

Copyright © 2024 Thomson Reuters