NEW RISE IN VIEW FOR SHARES AT OPENING
by Laetitia Volga
PARIS (Reuters) – The main European stock markets are expected to rise slightly at the opening on Wednesday thanks to good results from American companies and the prospect of the resumption of Russian gas deliveries to Europe.
Futures contracts give an increase of 0.5% for the CAC 40 in Paris, 0.39% for the Dax in Frankfurt, 0.35% for the FTSE in London and 0.14% for the EuroStoxx 50 .
Reports from Reuters that the Nord Stream 1 pipeline is expected to resume service on Thursday as planned eased gas supply concerns in Europe and should again help equity markets rise.
“The latest news that Russian gas will be flowing again gave European indices a welcome boost on Tuesday despite uncertainty over the amount of flow,” said IG analyst Joshua Mahony.
Fear of a global recession is not completely dismissed, however, and the rebound in equities over the past week could just as well reflect a simple rebound from “extreme levels of pessimism”, according to Rodrigo Catril at NAB.
On Wall Street, which ended sharply higher on Tuesday, Netflix shares gained around 7.9% in after-hours trading after the announcement of a lower-than-expected loss of subscribers in the second quarter and forecasts. optimistic for the current quarter.
Futures contracts on the main American indices suggest for the moment a continuation of the rise, of the order of 0.4%.
AT WALL STREET
The New York Stock Exchange ended in the green on Tuesday as additional companies released better-than-expected results, providing a breath of fresh air to investors worried that soaring inflation will weigh on private sector profits.
The Dow Jones index gained 2.43% to 31,827.05 points, the S&P-500 gained 2.76% to 3,936.69 points and the Nasdaq Composite .IXIC advanced 3.11% to 11,713.15 points. .
The S&P-500 has been at a high since June 6, while the Nasdaq recorded its strongest daily percentage rise since June 24.
Halliburton (+2.11%) posted a 41% rise in adjusted quarterly profit, toymaker Hasbro gained 0.7% and Truist Financial 2.6% after posting quarterly profit that beat expectations.
Johnson & Johnson and IBM, which both warned of the impact of the strong dollar, lost 1.46% and 5.24% respectively.
The Nikkei on the Tokyo Stock Exchange, up for the fifth consecutive session, took 2.67%, led by the rise in technology stocks in the wake of Wall Street.
Tech heavyweights like Tokyo Electron and Advantest gained 4.88% and 4.71% respectively.
Gained by the progress of the world markets and by the promise of Beijing to support the economy, the Chinese actions evolve/move in the green.
The Shanghai composite index advanced by 0.67%, the CSI 300 of mainland China by 0.27% and the Hang Seng in Hong Kong by 1.56%.
The US dollar is stable against a basket of international currencies (-0.02%) while the euro timidly increases its gains from the previous day thanks to the hope that Europe can avoid a major gas shortage and the possibility that the ECB will carry out a larger than expected rate hike on Thursday.
The single currency takes 0.11% to 1.0235 dollars.
On the bond market, the yield on ten-year Treasuries was stable at 3.0247%.
In Europe, its German equivalent fell slightly to 1.271% in early trade.
The bond market in the euro zone, and in particular Italy, will be one to watch as the President of the Council, Mario Draghi, must address the Senate during the day and face a vote of confidence, the result of which is expected around 5:30 p.m. GMT.
“Like President Sergio Mattarella, who accepted a new mandate by force at the beginning of the year in order to avoid a political crisis, Mario Draghi should do the same. Let us keep in mind, however, that the political crises in Italy always have last-minute surprises in store,” Saxo Bank said in a note.
The ten-year Italian yields for the moment nearly three basis points to 3.379%.
Oil prices are falling, under pressure from efforts by global central banks to curb inflation and before the anticipated announcement of an increase in crude inventories in the United States as demand weakens.
Brent lost 1.26% to 106 dollars a barrel and American light crude (West Texas Intermediate, WTI) dropped 1.26% to 102.91 dollars.
(Written by Laetitia Volga, edited by Myriam Rivet and Kate Entringer)
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