* The CAC 40 expected to be stable, the Stoxx 600 also
* Investors position themselves before the next Fed decision
* The indicators could make the markets react
PARIS, April 30 (Reuters) – European stock markets are expected to be hesitant at the opening on Tuesday before the last session preceding the next decision by the Federal Reserve, which is also rich in data for the euro zone.
According to the first available indications, the Parisian CAC 40 appears uncertain at the opening. Futures on the FTSE in London suggest a directionless advance, as do the Dax in Frankfurt and the EuroStoxx 50.
European markets will be closed on Wednesday for Labor Day and investors will seek to position themselves on Tuesday for the next meeting of the Federal Reserve.
The US central bank is expected to maintain rates at their current levels, but investors will be especially attentive to statements from its president, Jerome Powell, who could provide more guidance on the future trajectory of rates.
In fact, the latest data published in the United States show that inflation remains persistent, while activity remains resilient, keeping rate cuts at bay.
“The recent higher-than-expected inflation figures and subsequent upward revisions have likely eroded the Fed’s confidence in the ability of inflation to return to its target more sustainably,” notes economist Xiao Cui. senior at Pictet Wealth Management.
“The Fed likely needs to see a slowdown in inflation over several months before cutting rates, and with a strong labor market, there is no rush to do so.”
A series of indicators will also liven up trade in Europe on Tuesday. Eurozone inflation and GDP figures for the bloc and its two main economies, France and Germany, should highlight the gap between the dynamism of activity in the United States and the weakness of growth European.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended up on Monday, driven by technology stocks, on the eve of the Fed’s two-day meeting.
The Dow Jones index gained 0.38%, or 146.43 points, to 38,386.09 points. The broader Standard & Poor’s 500 gained 16.21 points, or 0.32% to 5,116.17 points. The Nasdaq Composite advanced 55.18 points (0.35%) to 15,983,084.
Tesla soared (+15.3%), the American automobile group having overcome regulatory obstacles which prevented it from deploying its FSD autonomous driving software in China.
IN ASIA
The Tokyo Stock Exchange is progressing after being closed on Monday, supported by the good performance of Wall Street. The Nikkei index gained 0.23% to 39,688.94 points and touched a one-month low, and the broader Topix gained 0.28% to 2,726.23 points.
Stocks linked to semiconductors post significant gains. Tokyo Electron takes 2.48%, the silicone wafer manufacturer Shin-Etsu Chemical advances 4.49%, while the investor SoftBank rises 1.43%.
Chinese continental indices erode ahead of next Fed meeting. Continental stock markets will be closed from Wednesday until May 6 on the occasion of Labor Day. The Hong Kong Hang Seng index is stable, the Shanghai SSE Composite loses 0.27%, the CSI 300 0.41%.
RATE
US yields vary little ahead of the Fed’s next decision.
The ten-year Treasury yield is holding steady at 4.6075%, while the two-year rate remains at 4.9726%.
CHANGES
The yen declines against the dollar but remains well above its 34-year low reached on Monday, while the Japanese government has not officially confirmed having intervened on foreign exchange.
In Asia, the yen fell by 0.27% to 156.75 yen per dollar, the Australian dollar fell by 0.61% to 0.6526 dollars.
The dollar strengthened by 0.24% against a basket of reference currencies before the Fed meeting, while the euro fell by 0.14% to 1.0704 dollars and the pound sterling by 0.18% at $1.2539.
OIL
Crude is eroding, discussions around a ceasefire in the Gaza Strip dispelling fears of a regional conflagration, while operators position themselves before the Fed’s next monetary policy meeting.
Brent fell 0.11% to $88.3 per barrel, with US light crude (West Texas Intermediate, WTI) losing 0.24% to $82.43.
MAIN ECONOMIC INDICATORS ON THE AGENDA FOR APRIL 30: COUNTRY GMT INDICATOR PERIOD CONSENSUS PREVIOUS FR 05:30 March consumer spending +0.2% +0.0%
households FR 05:30 Gross domestic product (GDP) T1 +0.1% +0.1%
(1st estimate)
– over one year +0.8% +0.7% FR 06:45 HICP consumer prices April +0.5% +0.2%
(1st estimate)
– over one year +2.2% +2.4% FR 06:45 Producer prices March n/a -1.7%
– over one year na -5.5% FROM 06:00 Retail sales March +1.1% -1.9%
– over one year na -2.7% FROM 07:55 Unemployment rate April 5.9% 5.9% FROM 08:00 Gross domestic product (GDP) Q1 +0.1% -0.3%
(1st estimate)
– over one year -0.2% -0.2% EZ 09:00 Consumer prices HICP April +2.4% +2.4%
(1st estimate) EZ 09:00 Gross domestic product (GDP) Q1 +0.2% +0.0%
(1st estimate)
– over one year +0.2% +0.1% USA 2:00 p.m. Consumer confidence April 104.0 104.7
(Conference Board) (Written by Corentin Chappron, edited by Jean-Stéphane Brosse)
