EUROPEAN EQUITIES MUST take advantage of the Wall Street rebound
of Laetitia Volga
PARIS (Reuters) – Major European equity markets are expected to rise Tuesday at the opening on Tuesday on the back of a rebound in Wall Street and Asian markets, which should help put aside economic, health and monetary fears.
The first indications available indicate an increase of 1.43% for the Parisian CAC 40, of 1.37% for the Dax of Frankfurt, of 1.09% for the FTSE of London and of 1.47% for the EuroStoxx 50.
European equity markets closed sharply on Monday, fears of containment in Beijing amid COVID-19 evolution in the Chinese capital coupled with the prospect of rapid US monetary tightening fueled doubts about the pace of the economy. growth.
These uncertainties should remain present but for the moment investors seem to want to benefit from the rebound in American equities, and in the technology sector in particular, following the announcement of the acquisition of the social network Twitter by Elon Musk.
In the absence of a major indicator, the session will be enlivened by several corporate publications, including quarterly sales figures from Orange, HSBC and even UBS.
VALUES TO FOLLOW:
A WALL STREET
Wall Street closed higher on Monday, with the Nasdaq index closing sharply higher after Twitter (+ 5.66%) agreed to be bought by billionaire and Tesla CEO Elon Musk for $ 44 billion.
The Dow Jones gained 0.7% to 34,049.46 points, the S&P 500 was up 0.57% to 4,296.12 and the Nasdaq Composite 1.29% to 13,004.85.
All the growing stocks benefited from the Twitter announcement: Alphabet and Microsoft, which will release their results this Tuesday after the market, took 2.9% and 2.4% respectively while Meta Platforms gained 1. , 6%.
The oil groups Chevron and ExxonMobil fell by 2.1% and 3.4% respectively, penalized like the entire energy sector by the drop in the price of crude oil of around 4%.
Futures contracts open without much change on Tuesday.
On the Tokyo Stock Exchange, the Nikkei index gained 0.71% less than an hour after closing, benefiting from Wall Street gains, but fears related to COVID-19 in China limit the performance of Japanese stocks.
Fujitsu gains 2.09% after press reports that the computer maker plans to sell its scanner business to Japanese office equipment specialist Ricoh (-0.43%).
In China, the day after a drop of about 5%, the Shanghai SSE Composite recovered 0.69% and the CSI 300 1.04% thanks to expectations of new support measures aimed at cushioning the economic slowdown that it could go so far as to amplify health restrictions in the country.
Beijing quickly expanded its extensive Covid-19 screening campaign, which was initially intended to affect just one district, to test nearly all of its 22 million inhabitants, fueling the hypothesis of a severe confinement similar to the one established in Shanghai last month. .
“If the blockade lasts longer,” it will have a significant impact on the Chinese economy and “also on supply chains around the world,” said BNP Paribas strategist Manishi Raychaudhuri.
The yield on US Treasuries rose three basis points to 2.8586% after falling sharply the day before on investor interest in safe haven assets with the health crisis in China.
The dollar lost ground against a basket of foreign currencies after hitting its highest level since March 2020 the previous day, supported by concerns over the impact of the Chinese lockdown and the prospect of a rapid rate hike in the US.
The euro was up 0.1% to around $ 1.0722, after a two-year low on Monday at 1.0695.
Oil prices are on an upward trend after falling sharply the day before due to demand concerns due to Chinese restrictions linked to COVID-19.
Brent was up 1.21% at $ 103.56 a barrel and US light crude (West Texas Intermediate, WTI) was up 0.93% at $ 99.46.
On Monday they lost 4% and 3.5% respectively.
NO GREAT ECONOMIC INDICATOR ON THE AGENDA
(Edited by Matthieu Protard)