Market: Slow stock markets as Christmas approaches

by Laetitia Volga

PARIS (Reuters) – Wall Street is expected to be slightly in the red on Thursday and European stock markets are moving in scattered order at midday, but with little difference in what looks like a break session as the holiday approaches and in the announcement of ​​some American indicators at the end of the week.

Futures contracts signaled a 0.22% drop for the Dow Jones in early trade, 0.27% for the Standard & Poor’s 500 and 0.34% for the Nasdaq.

In Paris, the CAC 40 lost 0.19% to 6,567.6 around 12:35 GMT. In Frankfurt, the Dax lost 0.39% and in London the FTSE gained 0.38%.

The pan-European FTSEurofirst 300 index was flat, the Eurozone EuroStoxx 50 fell 0.3% and the Stoxx 600 fell 0.16%.

In global markets, activity is cooling as Christmas approaches and trading volume is expected to continue to decline. On the Stoxx 600 as on the CAC, they represent less than a quarter of their daily average for the past three months at mid-session. The European index hit a one-week high earlier and rose with the previous day’s gain, helped by a good US indicator of household confidence.

While the Stoxx 600 is on course for a weekly gain, it should see a double-digit percentage decline for the year as a whole, while the S&P-500 may suffer its worst annual performance since 2008 amid the rise in central bank rates, the risk of recession and the impact of the war in Ukraine.

“2023 is expected to be another volatile year,” UBS said in a note.

Before you jump into the new year, a few indicators will animate the weekend starting at 13:30 GMT with the latest estimate of gross domestic product (GDP) in the US in the third quarter and the publication on Friday of income and expenditure of US households, which includes the PCE consumer price index.

VALUES IN EUROPE

The energy sector had the strongest growth with a gain of 1.06% thanks to the rise in oil prices. In the CAC 40 ranking, TotalEnergies is the leader (+1.36%). In London, BP and Shell rose 0.79% and 1.64% respectively.

Orpea is selling 4.32% after raising the expected value of impairments to 5.0-5.4 billion euros before tax for the 2022 financial year, up from 2.1 and 2.5 billion euros previously.

RATE

The yield on 10-year U.S. Treasuries lost more than three basis points to 3.6507%, the day after a three-week peak of more than 3.7%.

In Europe, the 10-year German, trending down in the morning, now rises to 2.337%. Analysts believe that this volatility can be explained by the low volumes with the Christmas holidays.

“I don’t put a lot of weight on the moves we’ve seen in the markets,” said Erik Nelson of Wells Fargo.

CHANGES

The dollar index, which measures the greenback’s volatility against a basket of benchmark currencies, was virtually unchanged and the euro rose slightly to $1.062.

OIL

Oil prices rose for a fourth session in a row as crude inventories fell in the US as a winter storm battered large parts of the country.

Brent rose 1.74% to $83.63 a barrel. barrel and US crude oil (West Texas Intermediate, WTI) 1.67% to $79.6.

(Laetitia Volga, Editing by Myriam Rivet)

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