The word Bourse is visible on a panel near the Palais Brongniart
by Claude Chendjou
PARIS (Reuters) – Major European stocks are expected to fall on Wednesday as profit-taking after a sharp rise the day before linked to hopes of a pause in rate hikes by major central banks while PMI indices for services must be published.
According to the first indications available, the Frankfurt Dax, which gained 3.78% on Tuesday, should lose 0.43% on Wednesday at the open. London’s FTSE 100, which closed 2.59% higher yesterday, is expected to fall 0.37%. The EuroStoxx 50 Index is expected to fall 0.35% after rising 4.2% on Tuesday.
Equity markets are expected to fall again as deteriorating manufacturing activity in Europe and the United States in September has fueled speculation since Monday that the major rate hike will end. Investors then believed that the latest economic indicators showed that the increase in the cost of credit was beginning to produce its effects by curbing demand. This scenario was further reinforced by Tuesday’s lower-than-expected rate hike by the Australian central bank.
On Wednesday, New Zealand’s central bank raised its benchmark rate by 50 basis points to 3.5% and indicated a 75 basis point hike had been considered, a sign that inflation remains a concern, despite of the risk of global recession.
Investors will be watching monthly figures from the S&P Global services index in Europe and the United States on Wednesday, while a private survey from ADP on US employment is also expected ahead of the US Department of Labor’s report on the matter on Friday. . .
The day before, a report on job openings (“SOLTA”) showed that they had fallen in August to their lowest level in almost two and a half years, a sign of a deterioration in the labor market.
The French State presented this Tuesday a public offer of acquisition at a price of 12 euros per share on the balance of the capital of EDF that it does not yet own and that should extend from November 10 to December 8.
ON WALL STREET
The New York Stock Exchange continued on Tuesday its strong rally that began the day before, driven by the great stocks of the technology sector, the first beneficiaries of the drop in bond yields in the hope that the Federal Reserve will become less aggressive as soon as at interest rate. walks ‘interest.
The Dow Jones Industrial Average gained 2.8%, or 825.43 points, to 30,316.32 points.
The broader S&P-500 rose 112.5 points, or 3.06%, to 3,790.93 points, its biggest advance since May 2020.
The Nasdaq Composite, with a strong technological component, advanced 360.97 points (3.34%) to 11,176.41 points.
On the Tokyo Stock Exchange, the Nikkei index rose 0.53% to 27,136.33 points and the larger Topix rose 0.34% to 1,913.3 points as the closing.
In China, the Shanghai SSE Composite fell 0.55% and the CSI 300 fell 0.58%.
The 10-year US Treasury bond yield, which hit a two-week low on Tuesday after already falling more than 20 points on Monday, rose again on Wednesday to 3.625% from 3.617% the day before. .
The German Bund of the same maturity ended Tuesday at 1.88% after falling in the session to 1.77%, the lowest since September 19.
The dollar also recovered ground (+0.2%) against a basket of benchmark currencies, including the euro, which lost 0.12% to $0.9971.
The pound sterling, with a fall of 0.24%, is trading at 1.1449 dollars, after having benefited for two sessions from the abandonment of the project to abolish the upper bracket of income tax in the United Kingdom.
The yen is almost stable (+0.02%) against the dollar at 144.06.
Oil prices, which rose sharply on Tuesday, remain stable while OPEC+ is scheduled to meet on Wednesday where a two million barrels per day (bpd) cut in the cartel’s output could be decided.
Brent fell 0.15% to $91.66 a barrel and US light crude (West Texas Intermediate, WTI) fell 0.23% to $86.32 a barrel.
(Written by Claude Chendjou, edited by Nicolas Delame)
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