2024-01-09 12:12:48
* Wall Street expected to be in the red
* In Europe, the CAC 40 lost 0.05%, the Stoxx 600 lost 0.3%
* Semiconductor sector in decline
* Unemployment in the euro zone falls below expectations
par Augustin Turpin
January 9 (Archyde.com) – Wall Street is expected to fall on Tuesday and European stock markets are in the red at mid-session, dragged down by stocks in the banking sector, basic resources and semiconductors, while the he wait-and-see attitude prevails before the publication of CPI inflation in the United States on Thursday.
Futures on New York indices signal an opening on Wall Street down 0.39% for the Dow Jones, 0.4% for the Standard & Poor’s-500
and 0.55% for the Nasdaq.
In Paris, the CAC 40 fell 0.34% to 7,425.19 around 11:40 GMT. In Frankfurt, the Dax lost 0.32% and in London, the FTSE 0.01%.
The pan-European FTSEurofirst 300 index lost 0.27%, the Eurozone EuroStoxx 50 0.51% and the Stoxx 600 0.29%.
European stocks in the semiconductor sector fell on Tuesday, dragging indices into negative territory, while several competitors in Asia and America warned of an upcoming drop in their profits due to weak economic conditions. STMicroelectronics shares fell 2.34% at 11:40 GMT.
However, the macroeconomic data that should determine the direction taken by the markets this week is not expected until Thursday, with the release of the Consumer Price Index (CPI) in the United States for December, which should determine the date when the US Federal Reserve will begin cutting interest rates.
US CPI inflation for December is expected to rise by 0.2% month-on-month and 3.2% year-on-year, according to economists polled by Archyde.com, following respectively 0.1% and 3.1% the previous month.
“Inflation has not yet returned to its target level and the Fed should not be in too much of a hurry to cut rates. The consumer price index can be quite sticky and stubborn, we expect that they start cutting rates from June,” said Marcella Chow, an analyst at JPMorgan Asset Management in Hong Kong.
Euro zone unemployment for November, released at 10:00 GMT, stood at 6.4%, slightly below the expectations of analysts polled by Archyde.com.
VALUES TO FOLLOW AT WALL STREET
Nvidia closed at an all-time high Monday following the chipmaker unveiled new graphics processors leveraging artificial intelligence. Nvidia shares rose 6.4% to end at $522.53.
Microchip Technology fell 4.2% in pre-market trading following lowering its revenue forecasts for the third fiscal quarter, citing the weakening economic environment.
Boeing, United Airlines and Alaska Air both said they found parts that were loose on several MAX 9 planes held for inspection. Boeing lost 1% before the opening, following dropping 8% the day before.
RATE
Euro zone bond yields are rising, following falling on Monday, as investors reverse their rate cut bets for 2024 and prepare for new government debt issuance.
The yield on the 10-year German Bund rose 7.1 basis points to 2.195%.
In the United States, the yield on Treasuries rose 4.5 bp to 4.0493%.
CHANGES
Lower U.S. inflation forecasts held back the dollar’s rise on Tuesday as traders reaffirmed their bets on a series of interest rate cuts from the Federal Reserve this year.
The dollar advances (0.25%) once morest a basket of reference currencies, while the euro loses 0.2% to 1.0927 dollars.
OIL
Oil prices are on the rise, recovering from their sharp decline in the previous session, as markets digested the increase in supply announced by OPEC to offset concerns regarding the situation in the Middle East.
Brent rose 1.85% to $77.53 per barrel, American light crude (West Texas Intermediate, WTI) rose 1.94% to $72.14.
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THE SITUATION ON THE MARKETS
(Some data may be slightly off) (Writing by Augustin Turpin, editing by Kate Entringer)
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