2023-08-08 05:34:00
The logo of stock exchange operator Euronext in Courbevoie near Paris, France
by Blandine Henault
PARIS (Archyde.com) – The main European stock markets are expected on a slightly bearish note on Tuesday at the opening, as caution prevails among investors who try to gauge the state of the world economy following recent contrasting statistics.
According to the first indications available, the Parisian CAC 40 might lose 0.05% at the opening. Futures contracts are signaling a decline of 0.05% for the Dax in Frankfurt, 0.11% for the FTSE in London and 0.04% for the STOXX 600.
European indices already closed the day before on a hesitant note ahead of the release of highly anticipated inflation figures from China (Wednesday) and the United States (Thursday), which should help assess the state of the economic slowdown in the world’s two major economic powers and to give clues to the monetary policy trajectory of the Federal Reserve and the People’s Bank of China.
Market operators took note overnight of the Chinese trade balance figures which showed a sharper drop than expected in exports in July (-14.5% once morest -12.5% expected). Chinese imports also fell by 12.4% once morest a consensus of -5%.
In Europe, the final figures for inflation in Germany for the month of July are expected at 6:00 GMT.
VALUES TO FOLLOW:
A WALL STREET
After a seesaw session, the New York Stock Exchange ended higher on Monday, marking a rebound following the losses of the previous week and while investors favored positions taken ahead of the publication US inflation data.
The Dow Jones index gained 1.16% to 35,473.13 points. The broader S&P-500 gained 0.90% to 4,518.44 points. The Nasdaq Composite advanced for its part by 0.61% to 13,994.40 points.
IN ASIA
The Tokyo Stock Exchange rose 0.33% on the heels of a positive close on Wall Street, although the corporate earnings season in full swing in Japan limited gains.
In Asia, the Hong Kong Stock Exchange fell by 1.37%, penalized by the disappointing figures for the Chinese trade balance, while the indices of mainland China are treading water.
RATES/EXCHANGES
The offshore yuan posted a limited decline despite poor Chinese foreign trade figures.
“Markets have become increasingly numb to disappointing Chinese economic data…we’re getting to a point where weak indicators will just bolster expectations of more monetary support,” observes Carol Kong, equity strategist. foreign exchange at Commonwealth Bank of Australia.
For its part, the dollar took advantage of its quality as a safe haven asset and gained 0.2% once morest a basket of reference currencies.
The euro lost 0.08% to 1.0993 dollars.
On the bond market, the yield on ten-year Treasuries fell by more than three basis points, to 4.044%.
OIL
Crude prices have changed little, torn on the one hand between the sharp drop in Chinese imports in July, which is fueling fears regarding demand, and on the other hand, production cuts in Saudi Arabia and Russia, which are constraining supply. .
The barrel of Brent from the North Sea gained 0.04% to 85.37 dollars and that of American light crude (WTI) took 0.1% to 82.02 dollars.
(Report Blandine Hénault, with Rae Wee in Singapore, edited by)
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