A Wall Street sign hangs in front of an American flag outside the New York Stock Exchange (NYSE) in New York
Wall Street is expected to show moderate progress at the opening on Tuesday, while the European stock markets are hesitant, the American elections and the next decision of the Federal Reserve (Fed) encouraging operators to be cautious.
New York index futures suggest Wall Street opening in the green, with the Dow Jones up 0.13%, while the Standard & Poor's 500 is up 0.23% and the Nasdaq is up 0. .38%.
In Paris, the CAC 40 rose 0.1% to 7,379.44 points around 12:10 GMT. The Dax in Frankfurt strengthened by 0.05%, while the FTSE in London was stable.
The pan-European FTSEurofirst 300 index lost 0.04%, the EuroStoxx 50 gained 0.05% and the Stoxx 600 declined by 0.04%.
The first polling stations opened their doors on Tuesday on the East Coast of the United States for a presidential election as undecided as it is historic between Democrat Kamala Harris and Republican Donald Trump, whose outcome some observers fear could tip the balance. violence in a deeply polarized country.
The markets, which in recent days have partly revised their positioning in favor of a victory for Donald Trump, would not be spared from possible turbulence.
“Many investors fear an abrupt market reaction – for example if the gap between the two candidates is marginal, which could lead to numerous legal disputes and delay the proclamation of the name of the winner,” recalls Christopher Dembik, strategy advisor at investment at Pictet AM.
The strategist adds that hedge funds are for the first time since January 2019 mainly positioned to buy futures contracts relating to the VIX, the volatility indicator. The results of the vote could be announced as early as Wednesday, around 04:00 GMT.
Operators will nevertheless remain focused on the next meeting of the Fed, which will announce its decision on its rates on Thursday.
The central bank is expected to once again lower its key rate by 25 basis points, and operators will be attentive to its comments on the American labor market, after a disastrous employment report for the month of October.
“The Fed should remain cautious about the pace of rate cuts in the future, economic data (having) shown since the decision to lower rates by 50 bps in September a resilient economy,” explains François Rimeu, senior strategist at Crédit Mutuel AM .
“The Fed should also emphasize the impact of hurricanes and strikes on the latest employment data,” adds the analyst.
On Tuesday, the ISM services indicator should according to consensus confirm the good performance of activity in the tertiary sector. VALUES TO FOLLOW AT WALL STREET
Palantir Technologies on Monday raised its annual revenue forecast for the third time this year.
Striking Boeing workers accepted the new contractual proposal made by the aircraft manufacturer on Monday and voted to return to work.
VALUES IN EUROPE Carrefour gains 1.1% after information from the Bloomberg agency according to which the leading European distributor is studying different options to increase its valuation, including merger-acquisition operations.
Bouygues reported on Tuesday a stronger-than-expected current operating profit for the first nine months of the year and confirmed its annual outlook, which brings the group up 3.1%.
German machinery and auto parts maker Schaeffler announced Tuesday it plans to cut 4,700 jobs in Europe, after its third-quarter operating profit fell nearly 50% and fell 4.5%.
Asos fell 6.6% after adjusting its outlook for 2025.
Adecco reported a 4% drop in revenue during its third quarter on Tuesday, falling 10.2%.
Vestas, the world's leading manufacturer of wind turbines, published third-quarter operating profit on Tuesday that was lower than expected and declined by 9.7%.
Schroders on Tuesday reported capital outflows of £2.3 billion for the quarter to the end of September, falling 13.6%.
Syensqo, a Belgian chemical manufacturer, announced on Tuesday that it plans to reduce its global workforce by around 2% in order to support its long-term growth and climbs 6.8%.
RATES European yields are rising as traders worry about the uncertainty surrounding the US election.
The yield on the German ten-year rose by 3.9 bp to 2.429%, that of the two-year rate rose by 1.8 bp to 2.309%.
The yield on the ten-year Treasury is stable at 4.311%, while the yield on the two-year security is unchanged at 4.1806%.
EXCHANGES The dollar is eroding, as currency traders reassess the chances of a victory for Donald Trump, who would support the greenback.
The dollar fell by 0.18% against a basket of reference currencies, the euro rose by 0.21% to $1.09, and the pound sterling strengthened by 0.23% to $1.2987.
OIL
Oil is moving little, with investors remaining cautious during the American election.
Brent rose by 0.39% to $75.37 per barrel, American light crude (West Texas Intermediate, WTI) rose by 0.39% to $71.75.
MAIN ECONOMIC INDICATOR ON THE AGENDA OF NOVEMBER 5:
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
USA 3:00 p.m. October ISM index 53.8 54.9
services
(Written by Corentin Chappron, edited by)
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