The Palais Brogniard, formerly the Paris Stock Exchange
by Laetitia Volga
PARIS (Reuters) – Major European stock markets are expected to be flat on Tuesday opening on Tuesday in the absence of a real catalyst on stock markets in this shortened week on Wall Street.
The first available indications show an increase of 0.23% for the Parisian CAC 40, 0.05% for the Frankfurt Dax, 0.28% for the London FTSE and 0.18% for the EuroStoxx 50 .
Markets ended the day slightly lower on Monday in reaction to the increase in COVID-19 cases in China. Despite the continued deterioration of the health situation, leading the Beijing authorities in particular to close museums, parks and shopping centres, the European stock market should timidly move forward.
The session promises to be calm in the absence of important economic indicators on the agenda, a trend that could last all week given that Wall Street will be closed on Thursday for the Thanksgiving holiday and will only reopen for half a session on Friday.
Among the few expected appointments, on Wednesday the Federal Reserve is expected to publish the minutes of its last meeting, which could give more information to investors on its intentions in the face of inflation and the risks of a recession.
The New York Stocks closed lower on Monday, on concern about the resurgence of the COVID-19 outbreak in China and its potential impact on demand and manufacturing.
The Dow Jones Index fell 0.13% to 33,700.28 points, the S&P-500 lost 0.39% to 3,949.94 points and the Nasdaq Composite fell more sharply, 1.09% to 11,024 .51 points.
Trading volumes have been sluggish, which should pick up as Thanksgiving approaches on Thursday.
In values, Walt Disney jumped 6.28% after announcing Bob Iger’s return to CEO of the entertainment giant and Tesla dropped 6.84% after announcing the recall of 321,000 vehicles in the US for taillight problems.
For now, futures are signaling a stable session on Wall Street.
The Nikkei on the Tokyo Stock Exchange gained 0.61%, supported by the weakness of the yen and the progress of the Shionogi laboratory (+2.77%) with the hope of an approval of its treatment for the COVID-19.
Chinese markets were in the green following the central bank’s announcement of 200 billion yuan (27.6 billion euros) in loans to six commercial banks to complete real estate projects.
However, the equity rally remains hampered by the deteriorating health situation in China.
The CSI 300 large-cap index in mainland China advanced 0.21% and the Shanghai SSE Composite 0.08%.
In the government bond market, the yield on 10-year US Treasuries fell to around 3.8%.
The dollar (-0.19%) erased some of the gains made the day before against a basket of benchmark currencies. The euro is almost unchanged, at 1.0251 dollars.
The oil market rose slightly thanks to the depreciation of the dollar, but worries about the recession and the drop in demand in China continued to weigh on prices.
Brent crude gains 0.31% to 87.72 dollars a barrel and American light crude (West Texas Intermediate, WTI) gains 0.21% to 80.21 dollars.
(Editing by Kate Entringer)