PARIS (Reuters) – Wall Street is expected to be hesitant at the open, while European stock markets fell during a session marked by cautious investors, the end seen as imminent to U.S. interest rate hikes that are insufficient to offset anemic Chinese growth.
New York index futures suggest a mixed opening on Wall Street, with the Dow Jones losing 0.23%, while the Standard & Poor’s 500 and Nasdaq are flat.
In Paris, the CAC 40 lost 1.25% to 7,282.7 points around 10:45 GMT. In Frankfurt, the Dax fell by 0.5% and in London the FTSE eroded by 0.29%.
The pan-European FTSEurofirst 300 index lost 0.55%, the EuroStoxx 50 1.08% and the Stoxx 600 0.57%.
Chinese growth numbers surprised with their weakness: China reported economic growth of 6.3% year-on-year on Monday morning, well below the consensus, which expected growth of 7.3%.
But “any stimulus to the Chinese economy will be much more modest than in the past due to the high indebtedness of local authorities and the simmering property crisis”, Rabobank experts estimate, limiting the prospects for a recovery in Chinese activity.
These data came to mask the slowdown in US inflation, confirmed by data released in recent weeks.
Investors are cautious as Fed chiefs enter a “blackout” period ahead of July’s monetary policy meeting.
The results of the seven main US technology companies are also due this week, and a disappointment on these securities with very expensive valuations could weigh on equity markets.
THE VALUES TO BE FOLLOWED IN WALL STREET
Tesla gained 1.8% ahead of the stock market as the group announced in a tweet that it had built its first Cybertruck at its factory in Austin, Texas, a concept presented in 2019 by general manager Elon Musk.
Activision Blizzard rose 4.5% in premarket trading after Microsoft and Sony signed an agreement guaranteeing the maintenance of Call of Duty, a video game published by Activision Blizzard, on Sony’s game platforms.
VALUES TO BE FOLLOWED IN EUROPE
Argenx jumps 26.1% to top the Stoxx 600 after announcing that its treatment for chronic inflammatory demyelinating polyneuropathy (CIDP) has met its main goal, with patients showing a 61% reduction in the risk of relapse compared to placebo.
TomTom rises 12.2% on higher revenue and free cash flow guidance
In Paris, the casino action is suspended at the request of the Saint-Etienne distributor pending the publication of a press release.
Poor Chinese growth data weighs on the luxury sector, which is highly exposed to Chinese consumers: The European luxury sector index fell 4.3%. LVMH, Hermès and Kering lost between 2.1% and 4.5% at the bottom of the CAC 40, while Richemont, the world’s second-largest luxury group, also reported disappointing first-quarter US sales. , falls by 9.2%. .
Interest rates are falling in anticipation of the end of US interest rate hikes after confirmation last week of easing inflationary pressures.
The German 10-year yield fell 5.1bp to 2.424%, while the two-year yield stagnated.
The ten-year Treasury yield fell 4.bp to 3.7794%, while the two-year yield fell 2.8bp to 4.7233%.
Currency traders remain cautious in the absence of a clear direction for US monetary policy.
The dollar fell 0.10% against a basket of benchmark currencies.
Conversely, the euro strengthened by 0.07% to $1.1234, while the British pound stagnated, up 0.02% to $1.3091.
Weak Chinese figures are weighing on crude oil, with market participants worried about global demand in the second half of the year.
Brent fell 1.43% to $78.61 a barrel. barrel, while US crude oil (West Texas Intermediate, WTI) fell 1.46% to $74.20.
(Writing by Corentin Chapron, Editing by Kate Entringer)
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