PARIS (Reuters) – Les Bourses européennes are expected to be mixed Tuesday at the beginning of a week rich in important economic indicators.
According to initial indications, the Paris CAC 40 would open higher by 0.11%. Futures contracts on the FTSE in London, the DAX in Frankfurt, and the EuroStoxx 50 suggest a directionless opening.
In the eurozone, the final manufacturing PMI indicators for March will be released on Tuesday, as well as the preliminary German inflation for the same month, while some members of the ECB board of governors are starting to discuss rate cuts.
However, markets will be focused on U.S. indicators after the first increase in 18 months of the ISM manufacturing activity indicator published on Monday.
The Jolt survey on job creation for March on Tuesday, the ADP private sector employment figures on Wednesday, and the Department of Labor’s monthly employment report on Friday are the main indicators of the week.
The Federal Reserve board of governors remains divided on the trajectory of the U.S. economy, with Fed Chair Jerome Powell stating on Friday that employment risks are now also being taken into account by the central bank.
If a labor market slowdown could justify a rate cut, its resilience could, conversely, support inflation and push the central bank to maintain its restrictive rates longer than expected.
A STREET ON WALL
The New York Stock Exchange closed mixed on Monday, with investors concerned about the timing of Federal Reserve interest rate cuts after higher-than-expected manufacturing data pushed Treasury yields higher.
The Dow Jones index lost 0.60%, or 240.52 points, at 39,566.85 points. The broader Standard & Poor’s 500 lost 10.58 points, or 0.20% to 5,243.77 points. The Nasdaq Composite, meanwhile, gained 17.37 points (0.11%) to 16,396.832.
IN ASIA
The Tokyo Stock Exchange is down, with markets concerned about a possible Bank of Japan intervention in exchange rates as the yen remains close to a more than 20-year low. The Nikkei is stable at 39,802.03 points, while the broader Topix lost 18 points, down 0.2% at 8,581.00 points.
Technology stocks rose following their U.S. counterparts, still buoyed by enthusiasm for artificial intelligence. Semiconductor groups Lasertec, Shin-Etsu Chemical, and Tokyo Electron rose by 1.95%, 0.5%, and 2.9%, respectively.
Chinese stocks fell despite improving manufacturing data, with markets awaiting further support measures. The Shanghai Composite SSE lost 0.14%, the CSI 300 0.42%.
RATES
U.S. yields are falling ahead of the release of numerous job indicators this week in the United States.
The yield on the ten-year Treasury is down 1.4 basis points at 4.3152% while the two-year rate is down 1.9 basis points at 4.6992%.
CHANGES
The euro is falling after stronger-than-expected U.S. manufacturing data.
The dollar is stable against a basket of reference currencies, with the euro down 0.12% at $1.073 and the pound down 0.06% at $1.2543.
In Asia, the yen is down 0.09% at 151.76 yen to the dollar, while the Australian dollar is unchanged at $0.6489.
OIL
The recovery in manufacturing activity in the U.S. and China is raising hopes for a rebound in oil demand this year, supporting prices.
Brent is up 0.5% at $87.86 per barrel, with West Texas Intermediate (WTI) gaining 0.53% at $84.15.
(Written by Corentin Chappron, edited by Bertrand Boucey)
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