by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to rise at the opening on Wednesday before the publication of Nvidia’s results in the evening and the European stock markets are also in the green at mid-session, driven in particular by the rebound in the technology sector.
New York index futures signal Wall Street opening up 0.23% for the Dow Jones, 0.13% for the Standard & Poor’s 500 and 0.15% for the Nasdaq.
In Paris, the CAC 40 advanced 0.09% to 7,236.26 points around 12:05 GMT. In Frankfurt, the Dax gained 0.31% and in London, the FTSE gained 0.04%.
The pan-European FTSEurofirst 300 index rose by 0.31% and the eurozone’s EuroStoxx 50 by 0.19%. The Stoxx 600 takes 0.23%, on track to end three consecutive sessions in the red.
The new technologies index on the Stoxx 600 rose almost 1% on Wednesday in the wake of the positive close of the Nasdaq Composite and the significant gains recorded by Nvidia the day before.
The American semiconductor giant, whose chips are used on servers for artificial intelligence (AI), must publish its quarterly results after Wall Street closes.
The outlook for the technology sector largely depends on Nvidia, the world’s largest market capitalization. The group has exceeded Wall Street’s revenue expectations for the past eight quarters.
The European Central Bank (ECB), in its semi-annual financial stability report, however, warned on Wednesday against a “bubble” in stocks linked to AI.
Beyond Nvidia’s results, market sentiment remains fragile as investors continue to monitor the latest developments around the conflict between Ukraine and Russia. The US embassy in Kyiv closed its doors on Wednesday in anticipation of possible Russian attacks.
The CBOE volatility index in the United States, which reached its highest level on Tuesday since the American election of November 5, barely fell on Wednesday, by 0.67%, to 16.25 points, while its European equivalent stands at 18.79 points, down 2.25%, after having climbed almost 10% the day before.
VALUES TO FOLLOW AT WALL STREET
Nvidia fell 0.1% in pre-market trading after climbing almost 5% on Tuesday as the group was due to publish its quarterly results in the evening.
Target plunges 18% in pre-market trading after announcing that it expects like-for-like sales and profits below expectations for the quarter including the end-of-year holidays.
VALUES IN EUROPE
Edenred advances by 3.63% thanks to an increase in Jefferies’ recommendation from “underperformance” to “hold”.
La Française des Jeux (FDJ) fell 4.32%, Crédit Agricole Assurances having announced that it had sold shares of the gaming group at a discount of 7% compared to Tuesday’s closing price.
STMicroelectronics lost nearly 1% after pushing back its long-term financial objectives by three years on Wednesday.
Elior fell 23.90%, with the group anticipating a slowdown in the growth of its turnover over 2024-2025.
Sage soars by almost 20%, the British software publisher having reported an increase in its annual profit and announced a share buyback plan.
RATE
Bond yields in the euro zone increased slightly on Wednesday, after the sharp drop the day before linked to a rush for safe haven assets against a backdrop of worsening tensions between Ukraine and Russia.
The yield on the German Bund at ten years increased by three basis points (bp), to 2.369%, and that at two years by 1.9 bps, to 2.16%.
In the United States, the yields on Treasury bills for these two maturities increased respectively by 4.5 bp, to 4.4237%, and by 2.8 bp, to 4.2996%.
CHANGES
The US dollar strengthened on Wednesday after reaching its lowest level in a week, with currency traders awaiting new indications on the policy that US President-elect Donald Trump intends to pursue.
The dollar index, which measures the greenback’s fluctuations against six reference currencies, rose 0.5% to 106.63 points, recovering from a three-day decline.
The euro fell 0.42%, to 1.0550 dollars, while the vice-president of the ECB, Luis de Guindos, declared on Wednesday that the institution was not “omnipotent” in the face of the weak growth in the euro zone, believing that this situation is largely due to structural problems.
The pound sterling fell 0.21% to 1.2654 dollars after the publication of a statistic showing that British inflation rebounded a little more than expected in October, to 2.3% over one year. This supports the hypothesis that the Bank of England (BoE) will gradually lower its key rates in the coming months.
Among electronic currencies, bitcoin, up 1.25%, approached its historic high of more than $94,000 reached overnight, driven by expectations of a more favorable regulatory environment for cryptocurrencies with the future. administration of Donald Trump.
OIL
Oil prices rose slightly on Wednesday but investors are divided between fears of an escalation in the Russian-Ukrainian conflict and the increase in American crude stocks over the week ending November 15.
Brent rose 0.20% to $73.48 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.53% to $69.76.
(Writing by Claude Chendjou, edited by Kate Entringer)
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