by Bertrand De Meyer
PARIS (Reuters) – Wall Street is expected to be stable at the opening on Tuesday while European stock markets closed slightly higher, with investors awaiting a truce from confectioners at the end of shortened sessions.
New York index futures suggest a stable opening on Wall Street, with the Dow Jones down 0.03%, while the Standard & Poor’s 500 is up 0.1% and the Nasdaq is up 0.2 %.
In Paris, the CAC 40 closed up 0.14% at 7,282.69 points. The Dax in Frankfurt fell 0.18%, while the FTSE in London rose 0.42%.
The pan-European FTSEurofirst 300 index gained 0.25%, the EuroStoxx 50 gained 0.1% and the Stoxx 600 increased by 0.2%.
Investors have no real catalysts ahead of the confectioners’ truce which will begin at the end of a shortened session on Wall Street.
After a busy week in terms of statements from monetary officials and financial indicators, the markets are digesting the prospects of a monetary slowdown by the Federal Reserve (Fed) in 2025 and the economic consequences of a second term of Donald Trump in the White House .
The Fed’s monetary easing should therefore be slower than previously anticipated across the Atlantic, while the latest data has relieved investors, as has the agreement reached to avoid a ‘shutdown’ at the start of the year.
However, trading volumes are expected to be very low during a session shortened due to the Christmas holiday.
In Europe, the indices remained in the green during the half-session which was also very calm, investors not having been worried by the composition of the new government of François Bayrou in France.
The revelations of a new large-scale recovery plan from Beijing to stimulate its moribund economy did not overly boost the European indices even though such measures seemed expected by the market.
VALUES TO FOLLOW AT WALL STREET
American Airlines suspended all flights in the United States for more than an hour on Tuesday, threatening many travelers’ holiday plans for the Christmas holidays, before indicating that the incident had ended.
RATE
US bond yields are supported by the outlook for 2025 after a busy week of statements from monetary policy makers and publication of indicators.
The yield on the ten-year Treasury increased by 0.8 bps to 4.6068%, while the yield on the two-year security increased by 0.3 bps to 4.353%.
The yield on the German ten-year fell by 0.4 bp to 2.325%, that of the two-year rate lost 0.7 bp to 2.066%.
CHANGES
The dollar remains at a two-year high on Tuesday thanks to the Fed’s outlook for a rate cut in 2025.
The dollar gained 0.08% against a basket of reference currencies, the euro eroded by 0.05% to $1.04, and the pound sterling strengthened by 0.16% to $1.2553.
OIL
The barrel is moving upwards on Tuesday, supported by the rather positive outlook in the United States after recent data considered reassuring and the desire of Beijing, the world’s largest importer, to revive its economy.
Brent rose by 0.51% to $73 per barrel, American light crude (West Texas Intermediate, WTI) rose by 0.53% to $69.61.
(Written by Bertrand De Meyer, edited by Augustin Turpin)
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