PARIS (Reuters) – The main European stock markets, apart from London, are expected to fall at the opening on Wednesday, with investors positioning themselves for the publication of CPI inflation in the United States.
Futures contracts suggest an opening decline of 0.36% for the Parisian CAC 40, 0.22% for the Dax in Frankfurt and 0.53% for the EuroStoxx 50, compared to an increase of 0.24%. for the FTSE in London.
CPI inflation for October is expected to show price stability, as the Federal Reserve has already cut rates by 75 basis points since September.
A jump in inflation would be a bad surprise, because markets are already preparing for lastingly higher inflation in the context of the victory of Donald Trump, whose program could contribute to tensions on labor markets and prices. goods.
Risky assets also continue to digest the implications of the American election.
In the euro zone, the gap between the Zew sentiment indicator published for Germany and that calculated for the bloc increased in November, suggesting that Europe’s largest economy is worried about the increase in customs duties promised by the Republican president.
The pressure of higher bond yields is also pushing stocks lower, as investors demand a higher level of remuneration from risky assets.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended down on Tuesday, with investors prioritizing profit-taking following the US presidential election, against a backdrop of questions about the impact of Donald Trump’s future policies, and in the Expecting inflation data later this week.
The Dow Jones index fell 0.86%, or 382.15 points, to 43,910.98 points.
The broader S&P-500 lost 17.36 points, or 0.29%, to 5,983.99 points.
The Nasdaq Composite fell 17.36 points (0.09%) to 19,281.40 points.
Investor enthusiasm was dampened in part by concerns about the potentially harmful consequences for inflation and growth of the incoming Trump administration’s policies.
IN ASIA
The Tokyo Stock Exchange is falling, in the wake of Wall Street. The Nikkei index lost 1.6% to 38,745.34 points. The broader Topix lost 1.2% to 2,708.63 points.
Fast Retailing, the owner of Uniqlo, is the main drag on the Nikkei and is down 1.8%.
Chinese stocks are faltering as US policy towards China promises to be tougher with the election of Donald Trump. The Hong Kong Hang Seng index declined by 0.46%, the Shanghai SSE Composite strengthened by 0.43%, the CSI 300 increased by 0.57%.
RATE
U.S. yields remain near their highest since July as investors position themselves for higher inflation under the new Trump administration.
The ten-year Treasury yield rose 1.4 bps to 4.4472%, while the two-year yield rose 1.5 bps to 4.3593%.
CHANGES
The dollar hits a three-month high against the yen, reflecting the economic impacts of Donald Trump’s victory.
In Asia, the yen declined 0.33% to 155.11 yen per dollar, a level that could trigger verbal intervention from Japanese authorities. The Australian dollar lost 0.12% to $0.6525.
The dollar gained 0.05% against a basket of reference currencies, the euro eroded by 0.16% to 1.0606 dollars, and the pound sterling lost 0.11% to 1.2733 dollars.
OIL
The barrel is up slightly, with investors digesting the latest projections from OPEC and the International Energy Agency which suggest that demand will strengthen less than expected in 2024, while physical markets appear tense.
Brent rose by 0.33% to $72.13 per barrel, American light crude (West Texas Intermediate, WTI) rose by 0.29% to $68.32.
(Written by Corentin Chappron, edited by Kate Entringer)
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