Wall Street cut in sight pending US inflation – archyworldys

by Laetitia Volga

PARIS (Reuters) – Wall Street is expected to fall and European stock markets retreat, with the exception of London, on Wednesday at mid-session, before the release of the latest US inflation figures. New York index futures signal an opening down 0.55% for the Nasdaq, 0.35% for the Standard & Poor’s 500 and 0.25% for the Dow Jones.

In Paris, the CAC 40 lost 0.29% to 7,023.03 around 11:50 GMT. In Frankfurt, the Dax gives up 0.18% and in London, the FTSE takes 0.5%.

The pan-European FTSEurofirst 300 index fell 0.1%, the EuroStoxx 50 in the euro zone fell by 0.27% and the Stoxx 600 by 0.21%.

After having recently chained records thanks in particular to the results, equities are generally neglected while inflationary fears in the global economy remain a major source of concern.

The monthly consumer price figures in the United States, released at 13:30 GMT, are an important deadline for investors uncertain of the impact of inflation on the Federal Reserve’s rate policy.

The median of the estimates of economists polled by Reuters gives a figure of 4.3% year on year for the basic inflation index “core CPI” after 4.0% in September.

“Continued rise in consumer prices [est] a scenario which would prove right to those within the Fed, like James Bullard, the president of the Fed of St Louis, recently pleaded for a rate hike next year “, commented Ricardo Evangelista, senior analyst at ActivTrades.

The market took notice earlier of the acceleration in producer prices in China last month at the fastest pace since 1995 and the confirmation of HICP inflation at 4.6% in Germany.

VALUES IN EUROPE

The oil sector (+ 1.26%) signs the strongest increase of the day, which supports the Footsie 100, after the recent rise in crude prices.

On the value side, Crédit Agricole fell 1.05% after the publication of quarterly results marked in particular by the decline in income from the capital markets.

Alstom climbed 8.40%, well ahead of the CAC 40, after having reported in particular a cash outflow less important than feared.

Among the strong increases in the Stoxx 600, Marks & Spencer soars 11.34%, the highest in nearly two years, after half-year profit above expectations and raising its annual outlook.

The bank ABN Amro is granted 3.00% in Amsterdam, the distributor Ahold Delhaize takes 3.58% after their publications.

Sports equipment supplier Adidas fell 5.5% after results and prospects weighed down by tensions in supply and a difficult market environment in China.

Excluding results, Valneva advanced 18.07% after the announcement of the approval by the European Commission of an advance purchase agreement of up to 60 million doses of its vaccine against COVID-19.

RATES / CHANGES

In the bond market, the yield on ten-year US Treasuries rose to 1.483% after falling the previous day to the lowest since September 24 at 1.415% on readjustments of positions.

As for European government bonds, the German ten-year is relatively stable at -0.282%.

The dollar took 0.33% against a benchmark basket after three sessions of decline and the euro fell slightly to 1.1544 dollars.

OIL

Oil prices are down after having clearly benefited the day before from the surprise drop in crude stocks in the United States last week as travel demand resumes.

The barrel of Brent lost 0.04% to 84.75 dollars and US light crude 0.44% to 83.78 dollars.

(Report Laetitia Volga)