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The Dow Jones seen uncertain, the S&P 500 up 0.11%, the Nasdaq 0.26% The CAC 40 lost 0.24% and the Stoxx 600 gained 0.07%
* Markets prepare for the publication of PCE inflation
* Political risk weighs on French assets
by CORENTIN CHAPPRON
PARIS, June 26 (Reuters) –
Wall Street is expected to be mixed on Wednesday, supported by Nvidia’s rebound but cautious before the publication of PCE inflation on Friday, while European stock indices welcome the latest monetary policy comments.
New York index futures suggest Wall Street opening in the green, with the Dow Jones looking for direction, while the Standard & Poor’s 500 takes 0.11% and the Nasdaq 0.26%.
In Paris, the CAC 40 lost 0.24% to 7,643.69 points around 11:15 GMT. The Dax in Frankfurt gains 0.48%, compared to 0.31% for the FTSE in London
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The pan-European FTSEurofirst 300 index rose by 0.19%, compared to 0.1% for the EuroStoxx 50 and 0.07% for the Stoxx 600.
US markets are preparing for the release of PCE inflation on Friday, the Federal Reserve’s favorite indicator of price dynamics and essential to the conduct of monetary policy.
In fact, inflation remains persistent across the Atlantic, removing the prospect of the first rate cuts.
Dynamics specific to the indices are also at play, as Nvidia’s rebound supports the S&P 500 and the Nasdaq, of which the group is one of the main constituents.
In the euro zone, the indices welcome the latest statements from the member of the Governing Council of the European Central Bank, Olli Rehn, who considered that it was relevant to expect two new rate cuts this year.
These new elements reinforce investors’ bets, while the latest European economic figures have surprised on the downside.
Political uncertainty before the first round of French legislative elections, scheduled for Sunday, weighs on French stocks, which decline mid-session.
Global markets will be paying attention to the first debate between Joe Biden and Donald Trump, candidates for the US presidential election, which will take place on Thursday evening in the United States.
VALUES TO FOLLOW IN WALL STREET
Fedex announced on Tuesday that it expects a profit for the 2025 financial year to exceed analysts’ expectations.
Nvidia continues its rebound started Tuesday before the opening, and leads in its rise stocks linked to semiconductors, including Micron
which will publish its quarterly results after the close.
VALUES TO FOLLOW IN EUROPE
Nvidia’s rebound supports tech stocks, with the sector index posting the best performance of the Stoxx 600 sectors, up 0.99%.
Atos announced on Wednesday that it had received a revised global financial restructuring proposal from its creditors taking into account the end of discussions with Onepoint, Butler Industries and Econocom, and fell by 2.42%.
DHL strengthened by 1.52% after encouraging figures from its rival FedEx.
Volkswagen drops 1.6% as investors worry about the cost and uncertainties of a joint venture with US electric vehicle maker Rivian.
Aston Martin rose 1.74% as the automaker said deliveries of its new limited-edition Valiant sports car will begin in the fourth quarter.
The American food delivery group Doordash expressed interest last month in acquiring its British competitor Deliveroo
which advances by 2.04%.
Alfen, an energy storage specialist and electric vehicle infrastructure provider, on Wednesday reduced its revenue and Ebitda forecasts for this year and collapsed by 43.71%.
RATE
US yields advance in a context of caution before the publication of inflation figures for June on Friday.
The yield on the ten-year Treasury increased by 4.1 bps to 4.2787%, while the two-year rose by 4.6 bps to 4.7368%.
In Europe, the yield on the German ten-year rate increased by 2.3 bp to 2.435%, that of the two-year rate was stable at 2.815%.
The ten-year French OAT rate advances by more than three basis points, to 3.159%, still above its level preceding the announcement of early legislative elections (3.11%) but below the peak reached at 3.338% on June 11.
CHANGES
The dollar is strengthening, as investors anticipate an increase in the rate differential between the Fed and the rest of the central banks.
The dollar advanced 0.25% against a basket of reference currencies, the euro lost 0.28% to 1.0683 dollars, and the pound sterling lost 0.19% to 1.2659 dollars.
TO OIL
The barrel is slightly up before the publication of data on stocks from the Energy Information Administration at 1430 GMT, which should show a sharp decline in stored volumes, according to the consensus of analysts.
Brent strengthened by 0.82% to $85.71 per barrel and American light crude (West Texas Intermediate, WTI) gained 0.92% to $81.57.
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(Written by Corentin Chappron, edited by Blandine Hénault)
