European stock markets should attempt a rebound – archyde

by Blandine Henault

PARIS (Reuters) – The main European stock markets are expected to rise on Wednesday at the opening, in the wake of Asia, after a start to the week marked by renewed risk aversion.

Futures are reporting a rise of 0.25% for the Dax in Frankfurt, 0.39% for the FTSE in London and 0.24% for the EuroStoxx50.

The first indications available also give the Parisian CAC 40 up 0.23% at the opening.

On Tuesday, the European indices ended in dispersed order, after a session of decline on Monday, in a context made cautious by the lingering concerns about the Delta variant of the coronavirus and its impact on the economy, of the control that Beijing intends to operate on the Chinese technology sector as well as the geopolitical risk in Afghanistan after the capture of Kabul by the Taliban insurgents.

Despite the decline Tuesday night on Wall Street, a rebound has started in Asia and the futures on US indices are signaling a slight increase at the opening.

If the trend looks positive, investors will nonetheless be attentive to another lingering concern around the withdrawal of monetary support from the Federal Reserve, which will publish in the evening (18:00 GMT) the minutes of its monetary meeting of July.

VALUES TO FOLLOW:

A WALL STREET

The New York Stock Exchange ended lower on Tuesday after the release of data indicating a larger-than-expected drop in US retail sales in July. The results considered disappointing of Home Depot (-4.3%) also weighed.

The Dow Jones index lost 0.79% to 35,343.28 points. The S & P-500 lost 0.71% to 4,448.08 points and the Nasdaq Composite fell 0.93% to 14,656.18 points.

IN ASIA

The Tokyo Stock Exchange rose 0.75% as the close approached, helped by the rise in defensive stocks.

In China, stock indices are also rebounding along with defensive stocks and financial stocks. The CSI 300 index is up 1.37%.

RATES / CHANGES

Another sign of easing tensions on the markets, the yield on ten-year Treasuries regained more than two basis points, to return to 1.2801% after a low of 1.217% the day before.

On the currency market, the euro regains a little color, at 1.1713 dollar, after having touched earlier in the session a low of the year, at 1.1700.

The dollar index, which measures the fluctuations of the greenback against a basket of benchmark currencies, is unchanged, after gaining 0.66% over the last two sessions.

OIL

Same rebound in crude prices which have aligned four consecutive sessions of decline on fears of a slowdown in demand for hydrocarbons with the rapid spread of the Delta variant of the coronavirus.

The barrel of Brent regained 0.43% to 69.33 dollars and that of US light crude (WTI) advanced 0.44% to 66.88 dollars.

(edited by Myriam Rivet)