by Claude Chendjou

PARIS (Reuters) – The main European scholarships are expected to increase on Wednesday in the continuity of the rebound started on Tuesday, but the trend should remain fragile while the American Federal Reserve (Fed) must return its monetary policy decision before that evening before that of the European Central Bank (ECB) Thursday.

Business results should also drive exchanges the day after the publication of LVMH financial accounts, heavy goods vehicles, while Meta Platforms, Tesla and Microsoft are scheduled after the fence of Wall Street.

According to the first indications available, the Parisian CAC 40 should snack 0.04% at the opening. The Dax in Frankfurt could advance by 0.22%, while the FTSE 100 in London should open practically unchanged. The Eurostoxx 50 index is expected to increase by 0.65% and the Stoxx 600 up 0.39%.

The markets recorded a rebound on Tuesday while investors are reassessed the impact of the artificial intelligence model (AI) of the Chinese start-up Deepseek, which seemed to call into question the valuation and the hegemony of the American giants in the sector of AI with the presentation of a low -cost model.

“There seems to be a certain relief in the rally (markets), mainly due to a consensus which is formed according to which, although appearance impressive, Deepseek will lack either the scalability necessary to truly disturb the sector of the ‘IA, the low -cost model of the group will actually increase the request for GPU, “explains Kyle Rodda, analyst financial markets at Capital.com.

Attention also turns to the Fed which should leave its guiding rates unchanged in its monetary policy press release scheduled at 7:00 p.m. GMT. Before the Fed, the Bank of Canada (BOC) will make its decision at 2:45 p.m. GMT. These announcements will then intervene that Tuesday the White House reaffirmed its intention to impose customs duties in Canada and Mexico this Saturday, which could cause a trade war and revive inflationary pressure.

A Wall Street

The New York Stock Exchange ended up on Tuesday, carried by the rebound of titles linked to artificial intelligence and, more broadly, major technological values.

The Dow Jones index won 0.31%, or 136.77 points, at 44,850.35 points.

The wider S&P-500 took 55.42 points, or 0.92%, at 6,067.70 points.

The Nasdaq Composite advanced 391.75 points (2.03%) to 19,733.59 points.

NVIDIA rebounded 8.8% after the day before dropped by 17% and lost around 590 billion dollars in market valuation.

In Asia

On the Tokyo Stock Exchange, the Nikkei index advanced 1.02% to 39,414.78 points, in the wake of the positive fence of Wall Street the day before. The wider topix took 0.68% to 2,775.59 points.

Flea and AI specialists such as Advantest (+4.36%), Tokyo Electron (+2.34%) and SoftBank Group (+2.43%) ended up in green.

In mainland China, the markets are still closed for the Lunar New Year’s holidays and the quotes will not resume until February 5.

The values ​​to follow in Europe:

Changes

The Dollar index, which measures the fluctuations of the American currency against six major currencies, gives way 0.70% on Wednesday to 107.84 points, after two consecutive sessions of winnings. He finished last week on a drop of 0.60%, the traders estimating while the customs duties wanted by the American president, Donald Trump, would be more moderate than expected.

The euro advances from 0.40%, to 10432 dollars, while the pound sterling exchanges $ 1.2459 (+0.14%).

RATE

The yield of American treasury bills at ten years fell from 3.1 base points to 4.5183%, after a gain of 2.1 points the day before. He had touched a four -week hollow on Monday.

The yield of the German Bund and the same deadline gives in approximately 2.5 basis points, to 2.535% while the ECB should drop Thursday by 25 base points its guiding rates.

The yield gap between the Bund and the OAT at ten years is decreasing, at around 72 base points, while the French Prime Minister, François Bayrou, judges “vital” that the country has a budget. The 2025 finance bill will be discussed from Thursday in joint joint committee (CMP) after its adoption in the Senate.

OIL

Oil prices are falling back on Wednesday against the increase in crude stocks in the United States and the appeasement of fears on Libyan production.

The Brent refused from 0.21% to 77.33 dollars per barrel and the American light crude (West Texas Intermediate, WTI) from 0.08% to 73.71 dollars.

Main economic indicators at the January 29 agenda:

Pays GMT indicator previous consensus period

EZ 9:00 am Money mass M3 over one year December +3.8% +3.8%

Credit to ND companies +1.0%

non-financial

Household loans ND +0.9%

(Written by Claude Chendjou, edited by Kate Entringer)

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