2024-10-30 12:19:00
couple Pauline Foret
(Reuters) – Wall Street is expected to be in disarray on Wednesday as European stock markets fall mid-session, Alphabet’s results having generated enthusiasm for the sector but investors are cautious while awaiting new economic data which will help assess the health of the American economy and job market.
Futures on New York indices signal a mixed opening on Wall Street, the Dow Jones being seen down 0.16% but the Standard & Poor’s 500 and the Nasdaq are expected up 0.12% and 0. 24%, respectively.
In Paris, the CAC 40 lost 1.44% to 7,403.21 points around 11:27 GMT. In Frankfurt, the Dax fell by 0.94% and in London, the FTSE 100 lost 0.37%.
The EuroStoxx 50 index is down 1.19%, the FTSEurofirst 300 is down 1.17% and the Stoxx 600 is down 1.12%.
Alphabet, Google’s parent company, published better-than-expected quarterly results on Tuesday evening, thanks to a 10% increase in its online advertising sales and a jump in demand for its cloud computing services ( “cloud”) linked to artificial intelligence (AI).
In pre-market trading, the stock gained 5.5%, taking with it other large-cap companies such as Amazon, Apple and Microsoft.
“Alphabet’s third-quarter results should reassure many skeptics,” said Gerrit Smit, manager of the Stonehage Fleming Global Best Ideas Equity Fund.
With large-cap technology companies playing a crucial role in Wall Street’s positive performance this year, markets’ attention will be focused on other “megacaps” due to report results by Thursday, with figures from Microsoft and Meta being expected after closing.
After the Jolts report which reported Tuesday that job offers were lower than expected in September, the market will also take note of the ADP survey at 12:15 GMT before the publication of the official monthly employment report on Friday.
Elsewhere in the world, the stock markets are hesitant, cooled by the imminent arrival of the American presidential elections, for which the vote promises to be particularly close.
With markets largely banking on a victory for Donald Trump, many investors are turning to safe havens such as gold, which hit a record on Tuesday. VALUES TO FOLLOW AT WALL STREET
Alphabet climbs 5.5% in pre-market trading after beating expectations in the third quarter, taking with it Microsoft, Apple and Meta, which gain between 1.2% and 2.4%.
Caterpillar reported a decline in adjusted quarterly profit as rising borrowing costs and persistent inflation led to a slowdown in demand for machinery.
Eli Lilly disappointed Wall Street expectations with its third-quarter profit on Wednesday, weighed down by higher manufacturing and acquisition costs, even as demand for its weight-loss drug increased.
VALUES IN EUROPE
Campari lost 13.4% after the spirits maker reported third-quarter sales below expectations as well as an 18.2% drop in operating profit.
Moncler lost 2.75%, the Italian group having reported a 3% drop in sales at constant exchange rates against a backdrop of slowing global demand, and dragging the European luxury sector into its fall.
RATE
Bond yields are falling this Tuesday after experiencing several days of consecutive increases following the latest data on job creation in the United States and strong demand for its latest sale of seven-year bonds for $ 44 billion.
The yield on ten-year Treasuries fell 5.2 basis points to 4.2222%, and two-year Treasuries lost 3.3 basis points to 4.0860%.
Across the Rhine, the yield on the ten-year German Bund fell by 1.9 basis points to 2.3140% and the two-year by 2.5 basis points to 2.1930%.
CHANGES
The dollar retreats on Wednesday after reaching highs earlier in the week, as investors await the release of several economic indicators. At the same time, the euro is recovering some of its losses after the latest data on growth in the euro zone, while the pound sterling is moving little while awaiting the first budget of the new Labor government.
The greenback lost 0.12% against a basket of reference currencies.
The euro gained 0.14% to 1.0833 dollars.
The pound sterling loses 0.34% against the dollar, and 0.48% against the euro
OIL
Oil prices regain strength on Wednesday after falling in the previous two sessions, with markets pricing in the possibility of a ceasefire between Israel and Hezbollah and increased crude supplies from the countries of the ‘OPEC+ faced with the decline in oil-related stocks in the United States.
Brent gained 1.14% to $71.93 per barrel and American light crude (West Texas Intermediate, WTI) gained 1.19% to $68.01.
OR
Spot gold hit an all-time high at $2,789.73 per ounce, as concerns over the US presidential election supported the yellow metal.
MAIN ECONOMIC INDICATORS ON THE AGENDA FOR OCTOBER 30:
Inflation re-accelerated in October in five German states, according to preliminary data released on Wednesday, while Germany’s gross domestic product (GDP) grew unexpectedly in the third quarter.
National-level figures in Germany are due at 13:00 GMT.
In the euro zone, the economy grew in the third quarter at a pace higher than consensus, shows the first estimate of gross domestic product (GDP) published Wednesday by Eurostat.
(Writing by Pauline Foret, edited by Kate Entringer)
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