European stocks should recover – 17.05.2022 at 10:24


EUROPEAN STOCK EXCHANGE EXPECTED TO RISE

Letitia Volga

PARIS (Reuters) – Major European stock markets are expected to open on a positive note on Tuesday on encouraging news of China’s advanced response to the COVID-19 outbreak, but vigilance remains amid continued uncertainty about the economic outlook.

The first available data gives an increase of 0.7% for the Paris CAC 40, 0.9% for the Dax in Frankfurt, 0.45% for the FTSE in London and 0.9% for the EuroStoxx 50.

The day’s trend looks more upbeat than Monday, thanks to a decline in new COVID-19 cases in China and no positive cases for three days outside quarantine zones in Shanghai, which is normally required when lockdowns are lifted. traffic restrictions.

But fears about the economic outlook remain in the background after lower-than-expected readings in China and the US the day before, rekindling investor fears of a global slowdown already facing central bank tightening in the face of inflation.

Fed Chairman Jerome Powell’s speeches at 1800 GMT and those of his colleague at the European Central Bank Christine Lagarde (1700 GMT) will be of particular interest to market participants looking for some commentary. on the economic situation.

The upcoming session will also be animated by, among other things, US monthly retail sales data at 1230 GMT and US industrial production data for April.

ON WALL STREET

On the New York Stock Exchange, the Standard & Poor’s-500 and Nasdaq indexes closed lower on Monday under pressure from Tesla and other growth stocks after the release of not-so-reassuring Chinese and US statistics that heightened fears of an economic slowdown. .

The Dow Jones rose 0.08% to 32,223.42 while the S&P-500 shed 0.39% to 4,008.02. The Nasdaq Composite fell 1.20% to 11,662.79.

Twitter lost 8.18% after Elon Musk suggested at a conference that cutting the social network’s purchase price could be justified.

Tesla, whose chief executive is Elon Musk, fell by 5.87%.

Many large companies closed lower, such as Amazon (-1.98%) and Alphabet (-1.38%), which put pressure on the S&P-500 and Nasdaq.

Wall Street futures are now trading up 0.33% to open 0.73%.

IN ASIA

In China, the CSI300 index added 0.86% and the Shanghai Composite index added 0.22% amid signs of an improvement in the country’s health situation.

The Hang Seng Index in Hong Kong rose 2.51% amid a meeting of Chinese politicians and technology executives dedicated to the development of the digital economy.

In Tokyo, the Nikkei index added 0.42% on the back of Chinese stocks, but gains were held back by several disappointing corporate results, notably reports from brewer Asahi (-11.4%) and advertising group Dentsu (-6.16%). ).

EXCHANGE/COURSE

The dollar is stable against a basket of base currencies, including the euro, which stands at $1.0452, up 0.2%.

On the bond side, 10-year Treasury yields edged up three basis points to 2.9131%, wiping out much of what was gained the day before amid concerns about global growth.

Its German equivalent rose to 0.982% in early trading from 0.937% at the close on Monday.

BUTTER

Oil prices fell slightly after Hungary, which is especially dependent on Russian hydrocarbons, opposed an embargo on Russian oil imports proposed by the European Commission.

Brent fell to $114.24 per barrel, while American light oil (West Texas Intermediate, WTI) fell to $114.04.

(Written by Laetitia Volga, edited by Jean-Stephan Bross)

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