PARIS (Reuters) – Wall Street is expected to fall and European stocks fluctuate in the middle of Tuesday’s session. The rebound that backed the stock this morning has come to an end as investors position themselves to announce monetary policy in the United States and Britain.
Index futures show a 0.43% decline for the Dow Jones, S & P-500 and Nasdaq.
In Paris, CAC 40 rose 0.15% to 6,435.2 points at 11:19 GMT. In Frankfurt, the Dax index took 0.11%, and in London, where the stock market was closed on weekends on Monday, the FTSE index lost 0.79%.
The pan-European FTSEurofirst 300 index fell 0.06%, while the EuroStoxx 50 of the eurozone rose 0.03% and the Stoxx 600 rose 0.07%.
The latter recovered at the session to 0.85% thanks to the recovery of Wall Street on Monday and good corporate results in Europe, but caution again gained the advantage with the approach of the Federal Reserve (Fed). and to a lesser extent the Central Bank of England (BoE), which seems to oppose stock markets.
Investors expect the two institutions to continue tightening monetary policy, driven by inflation, but fear the overly aggressive policies will strain the global economy, already weakened by the war in Ukraine and the COVID-19 crisis in China.
Fitch also lowered its growth forecast for China to 2022 from 4.8% to 4.3%, and Hong Kong’s gross domestic product fell more than expected to 4% at the end of the first quarter.
Among the indicators of the day, producer prices in the euro area in March rose more than expected by 5.3% for the year.
VALUABLE VALUE STREET VALUES
During the pre-market trade on Wall Street, the pharmaceutical giant Pfizer retreated after maintaining the sales forecast for the oral drug for the treatment of COVID-19 Paxlovid.
Estée Lauder fell sharply by 10% in pre-market trade after cutting its target profit for the year as COVID-19 restrictions in China affected demand for luxury goods.
VALUES IN EUROPE
The most cyclical sectors, such as automotive (+ 1.15%) and energy (+ 2.19%), remained leaders in the middle of the session, despite general renewed caution in Europe.
Bank stocks benefit from higher profitability: the European Stoxx sector index rose 1.12%.
BNP Paribas (+ 3.31%) is one of the highest in the CAC 40 after the publication of quarterly net income above expectations, the strength of its market activity more than offset the impact of the war in Ukraine.
BP grew 2.86% after announcing the highest net profit since 2008 and an increase in the quarterly share repurchase program.
Covestro fell 7.03% after lowering its annual profit plan, citing, inter alia, restraints in Shanghai and rising energy and raw material prices.
In the bond market, the yield on ten-year US Treasury bills on Monday exceeded 3% for the first time since December 2018, and it crossed this threshold again in the morning, before the Fed announced on Wednesday.
Now it has dropped slightly to 2.9692%.
In Europe, the session was marked by a short transition of ten years of return of the German fund to more than 1% for the first time since June 2015. It is now 0.953% after a peak of 1.016%.
After that, the French ten-year figure reached its highest level since August 2014 at 1.544% in the morning, and then stabilized at 1.474%.
In the foreign exchange market, the dollar fell 0.13% against a basket of reference currencies after reaching a nearly 20-year high last week due to expectations of a sharp rise in the United States. The euro did not change at $ 1.0502, not taking advantage of the fall in the US currency.
The pound rose slightly against the dollar and the euro ahead of the Bank of England meeting on Thursday, which should lead to an unexpected increase in rates by 25 basis points.
The Australian dollar benefited from a stronger-than-expected announcement by the RBA, Australia’s central bank, to raise the key rate to 0.35%.
Concerns about the effects of demand constraints on Chinese demand affect the oil market: Brent fell 1.39% to $ 106.08 a barrel, and US light crude oil (West Texas Intermediate, WTI) fell 1.47% to $ 103.62 .
(Inscription: Leticia Volga, edited by Mark Angran)