Rise in sight in Europe with the hope of a lull in Fed rates – 02/01/2023 at 07:55

Traders at the premises of Northern Trust in London

by Claude Chendjou

PARIS (Reuters) – The main European stock markets are expected to rise on Wednesday in the wake of the close on Wall Street which benefited from the hope of a lull in the rates of the United States Federal Reserve (Fed) but Today’s euro zone inflation data, manufacturing PMI indices and corporate earnings data could influence the trend.

According to the first indications available, the Dax in Frankfurt should gain at the opening 0.13%, the FTSE 100 in London 0.1% and the EuroStoxx 50 index 0.14%.

Investors will follow at 10:00 GMT the first “flash” estimate on inflation in the euro zone while the figures published in the week in Spain and France showed a further acceleration in the rise in prices.

This data, ahead of Thursday’s meeting of the European Central Bank (ECB) and the Bank of England (BoE), could rub off on the outlook for interest rates as the Fed is due to publish this Wednesday. its monetary policy decision.

The slowdown in U.S. wage growth on Tuesday’s labor cost data is fueling hopes that the Fed may announce at 19:00 GMT that the end of the cost hike cycle has ended. credit is now close.

However, this hope will be put to the test of manufacturing indices in Europe and the United States, unemployment figures in the euro zone scheduled for 10:00 GMT and the ADP firm’s survey of American employment at 1:15 p.m. GMT.

In terms of company results, Vodafone, GSK and Novartis are notably on the agenda in Europe, while Meta Platforms and T-Mobile US are planned in the United States.


The New York Stock Exchange ended higher on Tuesday, as data on labor costs in the United States reassured investors.

The Dow Jones Industrial Average gained 1.09%, or 368.95 points, to 34,086.04 points.

The broader S&P-500 gained 58.83 points, or 1.46%, to 4,076.60 points.

The Nasdaq Composite advanced for its part by 190.74 points (1.67%) to 11,584.55 points.


At the Tokyo Stock Exchange, the Nikkei index ended on a gain of 0.07%, to 27,346.88 points, while the Topix, broader, gave up 0.15%, to 1,972.23 points.

In China, the Shanghai SSE Composite rose 0.56% and the CSI 300 0.51% as activity recovered slightly in the country thanks to the abandonment of the “zero COVID” policy with a manufacturing PMI index calculated by Caixin/Markit at 49.2 in January, against 49.0 the previous month.



In trading in Asia, the yield of ten-year Treasuries fell two basis points on Wednesday, to 3.50%, before the Fed’s announcements.

Its German equivalent lost around three basis points on Tuesday, to 2.27%.


The dollar, which recorded a fourth consecutive monthly decline in January, began February down 0.04% against a basket of international currencies.

Against the euro, the greenback fell 0.09% to 1.0872.


Oil prices are stable, the decline of the dollar and the ebb of fears on the rates in the United States offsetting the prospect of a status quo at the OPEC + meeting which opens on Wednesday.

Brent climbed 0.08% to 85.53 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.24% to 79.06 dollars.

(Written by Claude Chendjou, edited by Jean-Stéphane Brosse)

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