PARIS (Reuters) – Wall Street is expected to rise modestly as progress in Europe is also muted at mid-session amid caution after five consecutive sessions higher for the Stoxx 600 as quarterly earnings season continues and new economic indicators are expected during the day at UNITED STATES.
Futures on New York indices signaled a Wall Street open up 0.07% for the Dow Jones, 0.20% for the Standard & Poor’s 500 and 0.25% for the Nasdaq.
In Paris, the CAC 40 advanced 0.27% to 7,096.22 at around 12:20 GMT. In Frankfurt the Dax takes 0.14% and in London the FTSE 0.02%.
The pan-European FTSEurofirst 300 index gained 0.49%, the Eurozone EuroStoxx 50 0.27% and the Stoxx 600 0.38%.
The positive trend in Europe is supported by the new technologies sector, which is sensitive to changes in interest rates, and by that of industry, as the prospects of a marked deterioration in the economic situation are diminishing.
According to Bloomberg, a European Central Bank (ECB) rate hike of just 25 basis points in March is on the table after the expected 50 basis point hike in February.
As for the economic situation, a source told Reuters that the German government does not expect a recession in the country this year, while inflation in the euro zone fell to 9.2% year-on-year in December, according to data. Eurostat finals.
In the US, where rate hike expectations have also been revised downwards as inflation eased, investors are expecting December retail sales data at 1:30pm GMT and 3:00pm GMT the NAHB real estate market indicator for new clues on the evolution of the economic situation. WALL STREET VALUES TO FOLLOW
VALUES IN EUROPE
In Europe, the high-tech sector (+1.5%) obtained the best performance of the Stoxx 600 with in particular ASM International (+9.66%), which on Tuesday published a quarterly turnover higher than expected.
In Paris, luxury stocks are sought after after the results of Richemont (+1.53%) and Burberry (+2.14%). Burberry’s chief financial officer Julie Brown also indicated that she sees promising signs China this month. Hermes advance of 0.72% e LVM extension by 0.11%.
Erametclose to an agreement with BASF as part of an investment of 2.4 billion euros in Indonesia, it takes 2.62%.
Downside, Renault lost 0.39%, the manufacturer reported on Wednesday a 5.9% drop in global sales in 2022.
in Frankfurt, Continental (-3.9%) weighs on Dax, the automotive supplier which posted a profit margin for 2022 at the bottom of its forecast range.
CHANGES
On the foreign exchange market, the surprise decision of the Banque du Japan (BoJ) to maintain its ultra-accommodative policy, also on the fluctuation limit of yields on Japanese ten-year bonds, weighed on the yen which fell by 0.71% against the dollar, to 129.04.
Against a basket of international currencies, the US currency fell 0.23% while the euro advanced 0.32% to $1.0823.
RATE IT
Bond yields continue to fall on the prospect of an interest rate lull: the German ten loses nearly four basis points, to 2.05%, and its American equivalent nearly six points, to 3.47%.
THE OIL
Oil prices continue to benefit from optimism about China. According to the International Energy Agency (IEA), the end of the “zero COVID” policy in China is expected to revive global oil demand this year, which would reach a record high.
The barrel of Brent rose by 1.45% to 87.17 dollars and that of American light crude (West Texas Intermediate, WTI) by 1.81% to 81.63 dollars.
(Written by Claude Chendjou, edited by Blandine Hénault)