Business

Downturn in sight in Europe, as on Wall Street

Downturn in sight in Europe, as on Wall Street
Written by madishthestylebar

WITHDRAWAL IN VIEW IN EUROPE, LIKE ON WALL STREET

by Laetitia Volga

PARIS (Reuters) – The main European stock markets are expected to fall on Tuesday at the opening in the wake of futures on the Wall Street indices and Asian markets, against a backdrop of persistent concern for the global economy.

Futures contracts indicate a drop of 0.98% for the Paris CAC 40, 0.75% for the Dax in Frankfurt, 0.7% for the FTSE in London and 0.81% for the EuroStoxx 50 .

European equities are expected to rebound as market sentiment continues to weigh on concerns about the impact of central bank policies and inflation on the global economy and businesses.

The American group Snap warned of the deterioration of macroeconomic trends, citing among other things the rise in costs, which should not allow it to reach its forecasts for turnover and profit for this quarter.

Its stock price fell sharply in transactions after the close of Wall Street, which should be felt across the US market at the open.

On the macroeconomic front, the European morning will be animated by the first results of the monthly S&P Global surveys of purchasing managers in the euro zone, which could make it possible to learn more about the impact of inflation, the war in Ukraine and supply problems on the morale of business leaders.

VALUES TO FOLLOW:

AT WALL STREET

The New York Stock Exchange should go back into the red the day after a sharp rebound with the support of the banking sector and the digital giants. [.NFR]

On Monday, the Dow Jones index gained 1.98% to 31,880.24 points, the S&P-500 gained 1.86% to 3,973.75 points and the Nasdaq Composite advanced 1.59% to 11,535.28 points. .

Apple (+4.0%) and Microsoft (+3.2%), heavyweights in the rating, spearheaded the market rise while JPMorgan gained 6.2% after raising its forecast net interest income (non-market) in 2022, from which the entire banking sector has benefited.

Futures contracts are signaling a decline of 0.73% for the Dow Jones, 1.19% for the Standard & Poor’s-500 and 1.82% for the Nasdaq.

The latter, with a strong technological component, should be particularly penalized by Snap’s warning on its quarterly results.

In after-hours trading, the stock fell 31%. In its wake, that of Alphabet lost 3.6% and Amazon 2.2%.

IN ASIA

The Nikkei in Tokyo fell 0.94% to below 27,000 as US futures traded in the red and investors struggled for new catalysts since the end of the corporate earnings season .

Chinese markets also fell, led by financials and healthcare stocks, amid heavy selling by foreign investors as concerns about slowing growth took precedence over renewed pledges of economic support from Beijing.

The CSI 300 index and Shanghai SSE Composite fell 1.3%.

EXCHANGES/RATES

The euro gave up some ground but confirmed its return to more than 1.065 dollars following announcements on Monday by Christine Lagarde, President of the European Central Bank (ECB), on the probable return of the deposit rate above zero by the end of September, opening the door to a first rate hike in July.

The dollar, regaining its safe haven status, rose 0.14% against a basket of benchmark currencies.

On the bond market, yields on ten-year US Treasury bonds gained two basis points to 2.8369%.

Its German equivalent advances by 2.5 points to 0.998%.

OIL

Oil prices are falling as worries about a possible recession dampening consumption outweigh the prospect of limited global supply and a pick-up in demand in China amid Beijing’s stimulus promises.

Brent fell 1.15% to 112.11 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.13% to 109.04 dollars.

(Written by Laetitia Volga, edited by)

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#Downturn #sight #Europe #Wall #Street

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