Paris (Reuters) – The main European stock markets are on small variations Tuesday morning for the first session of October before several key indicators expected during the day such as inflation and monthly indices of manufacturing activity.
In Paris, the CAC 40 lost 0.53% to 7,595.22 points around 07:30 GMT, after a decline of 2% on Monday. In London, the FTSE 100 gained 0.01% and in Frankfurt, the Dax gained 0.10%.
The EuroStoxx 50 index fell by 0.15%, the FTSEurofirst 300 gained 0.15% and the Stoxx 600 dropped 0.07%.
Futures contracts on Wall Street foreshadow a very slightly lower opening for the three main indices in New York the day after a record close for the Standard & Poor’s 500.
Equity markets in Europe, affected on Monday by profit warnings in the automobile sector against a backdrop of deterioration in demand, are attempting a cautious rebound.
The European automobile sector (-0.29%) on the Stoxx 600 is still losing ground with Volkswagen (-0.40%), Aston Martin (-0.32%), Renault (-2.35%) and Stellantis (-0.05%).
Mergers and acquisitions operations also liven up the exchanges, with in particular Covestro which takes 3.65% while the public oil company of Abu Dhabi, ADNOC, announced Tuesday that it had agreed to buy the chemical giant for a value of company of 14.7 billion euros.
Mulberry lost 3.22% after rejecting on Tuesday the takeover offer from Frasers (+0.06%) for an amount of 83 million pounds.
Haleon drops 1.12%, Pfizer having announced that it had sold shares of the British health group worth around $3.26 billion, thus reducing its stake to 15%.
The trend in Europe could change with the publication at 09:00 GMT of preliminary inflation figures in the euro zone. Christine Lagarde, president of the European Central Bank (ECB), said on Monday that the institution’s October rate decision would reflect confidence in falling inflation.
The market will also take note of the PMI indices in Europe and the ISM manufacturing index in the United States, as well as the Jolts survey on job offers, a prelude to the official monthly report scheduled for Friday.
U.S. Federal Reserve Chairman Jerome Powell said Monday that the jobs market did not need to slow further but that the Fed was in no rush to cut rates.
In the bond sector, ten-year sovereign yields in Europe and the United States are practically stable.
The yield gap between the German Bund and the French ten-year OAT remains around 80 basis points while the new French Prime Minister, Michel Barnier, delivers his general policy speech to the National Assembly this Tuesday.
(Written by Claude Chendjou, edited by Blandine Hénault)
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