Paris (Reuters) – Wall Street is expected to rise on Wednesday, as are the European stock markets mid-session, awaiting data on consumer prices in the United States.
New York index futures suggest Wall Street opening in the green, with the Dow Jones up 0.21%, while the Standard & Poor’s 500 is up 0.18% and the Nasdaq is up 0. .25%.
In Paris, the CAC 40 rose 0.4% to 7,453.22 points around 11:20 GMT. The Dax in Frankfurt strengthened by 0.7%, while the FTSE in London increased by 0.73%.
The pan-European FTSEurofirst 300 index gained 0.51%, the EuroStoxx 50 gained 0.46% and the Stoxx 600 grew by 0.65%.
The markets are awaiting data on consumer prices in the United States on Wednesday, which will be published before the opening, to refine their expectations regarding the monetary policy of the American Federal Reserve (Fed) in 2025.
Investors are now expecting just one rate cut from the Fed in 2025 after strong employment figures in December.
The Reuters consensus forecasts an acceleration to 2.9% of CPI inflation in the United States over one year in December, but stagnation at 0.3% over one month.
This data is considered a “pivot point” for JPMorgan analysts who estimate in a note that an “accommodating” figure will likely restart the rally which should be boosted by a period of solid profits.
CPI inflation will be all the more scrutinized as the markets wait for the first weeks of the presidency of Donald Trump, who will be inaugurated on January 20, to know if the policies he will actually put in place will be inflationary as many fear. economists.
Attention will also be focused on the first fourth quarter results of the major American banks.
In Europe, data published on Wednesday confirm the sluggishness of economic activity on the Old Continent while other indicators on inflation, expected on Friday, could fuel expectations regarding the European Central Bank’s rate cut trajectory ( ECB). VALUES TO FOLLOW AT WALL STREET [L8N3OB0JR]
American banks open the ball on Wednesday with the results of the last quarter of the 2024 financial year across the Atlantic.
JPMorgan Chase, Wells Fargo, Citigroup and Goldman Sachs will report results today while Bank of America and Morgan Stanley will report Thursday.
The markets will be attentive to the results of corporate and investment banking (CIB) while awaiting details on the consequences of a second Donald Trump presidency on their activities.
VALUES IN EUROPE
BUREAU VERITAS takes 3.23% after announcing that it is in discussions with the Swiss group SGS with a view to a potential merger, confirming information reported Tuesday by the Bloomberg agency.
Haleon takes 1% after a bookrunner announced that Pfizer intended to sell 700 million euros of the British pharmaceutical group to reduce its stake from 15% to 7.3%.
RATES Bond yields are easing after having moved upwards in recent days, with investors awaiting figures on consumer prices in the United States to confirm their analyzes concerning the Fed’s monetary policy expected in 2025.
The German ten-year yield fell by 1.8 bp to 2.604%, that of the two-year rate lost 1.9 bp to 2.296%.
The ten-year Treasury yield declined 1.8 bps to 4.7698%, while the two-year yield fell 0.6 bps to 4.3585%.
CHANGES
The Yen is on the rise, with markets now betting more than 70% on an interest rate hike from the Bank of Japan in January, while the dollar is moving lower ahead of inflation data.
The dollar fell by 0.22% against a basket of reference currencies, the euro was stable at $1.0307, and the pound sterling strengthened by 0.06% to $1.2222.
In Asia, the Yen advanced 0.7% to 156.84 yen per dollar.
OIL
The barrel is moving higher on Wednesday, reducing Tuesday’s losses, as attention once again focuses on potential supply disruptions linked to sanctions on Russian oil tankers.
Brent rose by 0.18% to $80.06 per barrel, American light crude (West Texas Intermediate, WTI) rose by 0.23% to $77.68.
MAIN ECONOMIC INDICATORS ON THE AGENDA OF (date):
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
USA 1:30 p.m. Consumer prices Dec. +2.9% +2.7%
– over one month +0.3% +0.3%
USA 1:30 p.m. Activity indicator Jan. 3.00 0.20
“Empire State”
(Written by Bertrand De Meyer, edited by Kate Entringer)
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