Wall Street expected to be stable, stock market Europe turns red – archyde

by Laetitia Volga

PARIS (Reuters) – Wall Street is expected around breakeven and European stock markets went into the red on Tuesday at mid-session, statements by a European Central Bank official on cutting asset purchases prompting a renewed caution and profit taking for the last session in August.

The New York index futures signal an opening of Wall Street at equilibrium (+ 0.03%) the day after the new records set at the close by the S & P-500 and the Nasdaq. In Paris, the CAC 40 lost 0.23% to 6,672.05 around 11:45 GMT. In Frankfurt, the Dax gives up 0.11% and in London, the FTSE gives up 0.55%.

The pan-European FTSEurofirst 300 index fell by 0.33%, the EuroStoxx 50 in the euro zone by 0.09% and the Stoxx 600 by 0.26%.

The latter is currently showing a gain of 2% over the entire month of August and is heading towards its seventh positive monthly performance, which would be unheard of for 2013 years, thanks in particular to the good season of the results of companies.

Robert Holzmann, a member of the ECB’s governing council, said in an interview with Bloomberg news agency that he was in favor of reducing asset purchases under the institution’s emergency program as soon as possible. next quarter, adding that he expected a discussion on the topic at the meeting next week.

VALUES IN EUROPE

The Stoxx transport and leisure index shows one of the biggest drops, with a drop of 0.54%, with the banking sector (-0.61%).

The member countries of the European Union agreed on Monday to remove the United States and five other countries from the list of countries deemed “safe” from a health point of view, which implies increased controls for travelers.

Air France-KLM, Ryanair, easyjet and IAG lost 1.33% to 3.41%.

Prosus gains 4.75% in Amsterdam after announcing the acquisition of the Indian payment platform Billdesk for 4.7 billion dollars (4 billion euros).

At the head of the SBF 120, Valneva, which has a series of positive sessions, jumped 15.6%.

“This is surely a boom in the market. We expect a lot of information in September-October, including the results of the clinical trial of the candidate vaccine against COVID-19 but also a potential agreement on the delivery of the vaccine, especially with the European Union, possible signing of a partnership with a ‘big pharma’ to expand production capacities. There is undoubtedly a lot of speculation around this (…) or perhaps leaks ” , commented a Paris-based analyst.

RATE

The 10-year Bund yield gained 3.5 basis points to -0.401%, rising to its highest for more than a month.

Eurozone inflation accelerated to 3% year-on-year in August, its highest level in ten years.

In the US market, the yield on ten-year Treasuries edged up to 1.2802%.

CHANGES

The dollar index, at its lowest in two weeks (-0.24%), remains penalized by the absence of a clear message from Jerome Powell on the future evolution of the monetary policy of the US central bank.

Forex traders are now waiting for US jobs figures on Friday to try to determine what the possible timeline for reducing the Fed’s asset purchases might be.

“The July jobs report was good, a new report of the same nature for August, (…) could start to make the markets react as it would reinforce the feeling that Jerome Powell’s tone was complacent and that the ‘announcement of a’ tapering ‘is closer than it might suggest, “said Alexandre Baradez, head of market analysis at IG France.

The euro (+ 0.37%) takes advantage of the fall in the dollar and Robert Holzmann’s statements to rise to $ 1.1839, the highest since August 6.

OIL

The oil market is pulling back as OPEC and its allies prepare for a meeting on Wednesday, which sources say should lead to a planned increase in production.

Fears of a drop in demand for crude oil from Louisiana refineries after Hurricane Ida also weigh heavily.

The barrel of Brent fell 0.67% below 73 dollars and US light crude 0.84% ​​to 68.63 dollars.

NO MAJOR ECONOMIC INDICATOR ON TODAY’S AGENDA

(Laetitia Volga, edited by Blandine Hénault)