by Claude Chendjou
PARIS (Reuters) – The main European scholarships are expected on an overall stable note on Wednesday at the opening with a new session rich in macroeconomic indicators and business publications, especially in the banking and automotive sectors.
According to the first indications available, the Parisian CAC 40 should gain 0.15% at the opening. The Dax in Frankfurt could move forward by 0.17%, while the FTSE 100 in London should nibble 0.08%. The Eurostoxx 50 index is expected up 0.04% and the Stoxx 600 increased by 0.10%.
The publication of the results of companies is in full swing with in the agenda of the day in Totalenergies, Stellantis, Air France-KLM, Crédit Agricole, Société Générale, Rémy Cointreau or ArcelorMittal. In the rest of Europe we are waiting for Mercedes, Volkswagen, Barclays or Santander.
In addition to the financial accounts of the companies, the session is marked by the monthly inflation indicators in France and in Germany pending that of the entire euro zone on Friday. In the United States, the PCE inflation monthly index is also scheduled in the afternoon, as are consumer expenses and the gross domestic product (GDP) of the first quarter.
In Europe, German retail sales fell less than expected in March and the market is now awaiting GDP figures in the euro zone which could provide elements on the evolution of the economic situation while uncertainty remains against the backdrop of trade tensions linked to new customs duties.
Donald Trump certainly reduced part of the customs duties on the automobile, but this relief is offset by deterioration in economic prospects and warning signals from companies.
“Companies are starting to make declarations on low visibility, reluctance or inability to sign long -term contracts, to make long -term projects – this is a very slippery slope,” notes Fabiana Fedeli, investment director at M&G.
“The growing probability of economic stagnation in the United States is entirely due to the exogenous forces of an erratic and restrictive economic policy with arbitrary customs rights, disturbances in public spending, changes in incentives and an unbearable tax position,” said David Kohl, chief economist at Julius Baer.
It is in this context that we learned Tuesday that the American consumer confidence index, measured by the Conference Board, had dropped at its lowest level for almost five years in April.
A Wall Street
The New York Stock Exchange ended up on Tuesday, registering in the green after sawtooth movements, while investors have taken into account a series of quarterly and economic data.
The Dow Jones index won 0.75%, or 300.03 points, at 40,527.62 points.
The wider S & P-500 took 32.08 points, or 0.58%, at 5,560.83 points.
The Nasdaq Composite has advanced 95.19 points (0.55%) to 17,461.32 points.
However, the main Wall Street indices are still in negative territory across the start of the year.
In Asia
On the Tokyo Stock Exchange, closed Tuesday for a public holiday, the Nikkei index advanced on Wednesday 0.57% to 36,045.38 points, while investors expect new developments on negotiations regarding customs duties.
The Nikkei index has recorded a fifth consecutive rise in increase, the longest series of gains since last August, and has posted its first monthly increase since December.
The wider topix took 0.63% to 2,667.29 points.
The chief commercial negotiator of Japan, Ryosei Akazawa, said that he wanted to make constant progress in the negotiations on surcharge with the United States. He will go to Washington during the day to meet his counterparts for a second series of discussions.
In the meantime, the Nikkei index is heading for its fifth consecutive rise in increase, the longest series of gains since last August, and is expected to display its first monthly increase since December.
The MSCI index bringing together the values ​​of Asia and the Pacific (excluding Japan) increased by 0.60%.
In China, the SSE Composite of Shanghai is falling by 0.13% and the CSI 300 of 0.03% in agitated exchanges, investors refrain from taking risks pending more clarity on American customs duties and their impact on the Chinese economy.
China, for its part, has drew up a list of American products that could be exempt from customs duties, two sources were told to Reuters to the file.
On the economic indicator side, manufacturing activity in China slowed down in April, while new export orders dropped and employment has declined, shows the Caixin/S&P global survey published on Wednesday.
The values ​​to follow in Europe:
Changes/Rate
The dollar cedes 0.03% against a basket of reference currencies and is heading towards its lowest monthly performance since November 2022, Donald Trump’s policy being deemed erratic.
The euro advances 0.11%, to 1.1398 dollars. The European single currency is expected to record an increase of more than 5% in April, its best monthly performance since November 2022.
The Sterling book is exchanged at 1.3403 dollars (-0.03%).
The yen is stable, around 142.32 for a dollar, before the decision Thursday of monetary policy of the Bank of Japan (BOJ), which should opt for the status quo. The yen increased by more than 5% against the dollar in April, its best monthly performance since last July.
RATE
The yield of American treasury bills at ten years is stable, at 4.1677% and affected in session 4.1580%, its lowest level since the beginning of April.
The markets now assess at 97 base points the total rate reductions in the American Federal Reserve (Fed) by December, against around 80 base points at the start of last week.
The yield of the German Bund of the same deadline is practically unchanged, at 2.49%, after a decline of 1.5 base points on Tuesday.
OIL
The oil market is falling back on Wednesday and is expected to record its strongest monthly decline in more than three years, the trade war has eroded the prospects for crude demand.
Brent Brent refused from 1.17% to 63.50 dollars per barrel and American brut (West Texas Intermediate, WTI) from 1.24% to 59.67 dollars.
The two main oil references have lost 15% and 16% on the whole month at this stage, the highest drop in percentage since November 2021.
(Written by Claude Chendjou, edited by Kate Entringer)
Copyright © 2025 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
