by Claude Shingo
PARIS (Reuters) – Wall Street is expected to show little change on Tuesday and European stock markets are bogged down in a crunch session on cheap buying of raw materials the day after indexes fell on jitters. About the health situation in China.
New York index futures point to a Wall Street open of 0.14% for the Dow, 0.21% for the S&P 500 and 0.08% for the Nasdaq. In Paris , CAC 40 It fell 0.16% to 6,623.71 at around 12:05 GMT. In Frankfurt, the Dax was up 0.01% and in London, the FTSE was up 0.57%.
The pan-European FTSEurofirst 300 rose 0.24%, while the region’s EuroStoxx 50 rose euro nibbles 0.02% and Stoxx 600 takes 0.31%.
A timid rebound in risk appetite in Europe is led by energy (+4.15%) and core resources (+2.36%), which have suffered significantly the day before from the risk of weaker demand in China as the country faces a crisis. An increase in COVID-19 cases.
While the situation in China has not improved, as Beijing closed parks, malls and museums on Tuesday, while other cities resumed mass testing for the coronavirus, it now appears that investors are leaning more towards interest rates, hoping for calm on this front.
Cleveland Fed Chair Loretta Mester spoke Monday night in favor of a December rate cut, and other US Federal Reserve officials are scheduled to speak on Tuesday, while the central bank is set to publish minutes of its latest monetary session. Policy meeting on Wednesday.
While investors are hoping for clues in the Fed’s “minutes” about the future path of interest rates, markets are currently pricing in a 50 basis point rate hike from the Fed next month.
in the area euro As the European Central Bank (ECB) also has to publish its “minutes” on Thursday, the debate is about interest rate hikes of 50 or 75 basis points. A Reuters poll of economists expects the interest rate to be raised by half a point. Robert Holzmann, a member of the ECB’s Governing Council, said on Tuesday that he had not yet decided on the matter, but was in favor of a three-quarters-point increase in the case of inflation. It does not recede in the area.
With regard to the development of the economy, the Organization for Economic Cooperation and Development ruled out, on Tuesday, the scenario of recession in the global economy next year, while estimating that the current energy crisis will lead to a sharp slowdown, especially in Europe.
The European Union, still divided over solutions to the gas crisis, is set to discuss on Thursday a European Commission proposal on a one-year price cap for such energy, according to a draft regulation seen by Reuters.
values in Europe
Energy and basic resources stocks posted some of the strongest gains as Saudi Arabia denied plans to increase production as previously reported by the Wall Street Journal.
In London, BP, Anglo American, Glencore and Rio Tinto Advance from 1.32% to 5.89%.
In Rome, Enel gained 1.36%, after the energy company announced a €21 billion asset disposal plan aimed at reducing its debt.
In Frankfurt, Thyssenkrupp fell 4.7% after reducing to less than 1% the participation of activist fund Cevian in the German group.
Bond yields in Europe rose slightly after recent comments that were rated differently by two members of the European Central Bank. Robert Holzmann said he would have preferred a 75 basis point rate hike and Mario Centeno called for a smaller hike.
The yield on the 10-year German bund increased by 2.3 basis points, to 2.004%.
In the United States, the yield on 10-year Treasury notes fell 3.6 points to 3.791%.
Stock exchanges In the foreign exchange market, the dollar fell by 0.33% against a basket of global currencies, affected by the return of risk appetite.
L’euro Seize the opportunity to rise to $1.0265 (+0.23%), while the British pound traded at $1.1872 (+0.43%).
Oil prices benefited from Saudi Arabia’s denial of a potential increase in production, but a cut in crude demand forecasts by many analysts in light of the COVID-19 epidemic in China capped the gains.
(Written by Claude Chandjou, Edited by Kate Entrenger)
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