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Stock market: what is moving in the markets before the opening on Tuesday

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MARKET REVIEWS. Global markets were little moved and held their breath on Tuesday, hours before the release of the US inflation gauge, where a surprise could send jolts through markets.

Stock market indices at 7:45 a.m.

The futures contracts Dow Jones posted an increase of 201.00 points (+0.59%) to 34,218.00 points. The futures contracts S&P500 rose 22.75 points (+0.57%) to 4,014.50 points. The futures contracts Nasdaq gained 73.75 points (+0.63%) to 11,785.50 points.

In London, the FTSE100 rose by 31.69 points (+0.43%) to 7,477.66 points. In Paris, the CAC 40 increased by 47.63 points (+0.72%) to 6,698.18 points. In Frankfurt, the DAX rose by 122.24 points (+0.85%) to 14,428.87 points.

In Asia, the Nikkei Tokyo advanced 112.52 points (+0.40%) to 27,954.85 points. For his part, the Hang Seng Hong Kong ended up 132.57 points (+0.68%) at 19,596.20 points.

On the oil side, the price per barrel of American WTI rose US$0.39 (+0.53%) to US$73.56. The barrel of North Sea Brent rose US$0.65 (+0.83%) to US$78.64.

The context

The continued rebound in the morale of German investors, measured by the ZEW barometer, enabled the stock markets to return clearly to the green after a balanced start to the session.

After a sharply higher session, helped by buybacks on the cheap, Wall Street was heading for an opening in the green (about +0.5%) according to the futures contracts of the three main indices.

But the trend is likely to change by the open, as the CPI inflation index is scheduled for release at 8:30 a.m., an hour before markets wake up in the US.

The publication of US inflation for the month of October had given investors “real hope” of a rapid decline in inflation, described Craig Erlam, an analyst at Oanda.

“Unfortunately, some of the data released since hasn’t been as supportive,” including on the pace of US wage growth, “so a lot depends on today’s release.” he.

Consensus calls for year-on-year inflation of 7.3%, down from 7.7% in October.

This figure and the conclusion of the meeting of the American Central Bank on Wednesday “can make the difference between a bullish Christmas rally and a visit from Father Bogey” on the markets, illustrate the analysts of Deutsche Bank, recalling that “the best and the worst session of 2022 on the S&P 500 took place on the day of a CPI index”.

The figure has, in the opinion of many analysts, little chance of changing the US Federal Reserve’s main rate hike decision on Wednesday, but could influence decisions in early 2023. The key rate is currently just below 4 % whereas it was close to 0% at the start of the year.

Analysts are expecting a 0.50 percentage point hike on Wednesday, but are not completely ruling out a 0.75 percentage point hike, as in recent meetings.

Other central banks meet during the week, such as the European Central Bank, or that of England on Thursday.

Bond market rates, also likely to see big swings after inflation figures, were down slightly in the US and Europe.

The European leader in air transport, the German Lufthansa, announced on Tuesday that it was raising its forecasts for 2022, counting on an operating result (EBIT) of 1.5 billion euros, against “more than a billion” previously, thanks to an increase in passenger traffic. This is the second time in a few months that the group has revised its forecasts upwards.

The action took 3.06% in Frankfurt, led the European sector like IAG (+3.17% in London), Air-France-KLM (+1.81% in Paris). Frankfurt airport manager Fraport also took 2.42%.

The British investment company HgCapital Trust rose 3.38% after announcing the sale of Transporeon, a dematerialized transport management platform, to the American industrial technology company Trimble (-3.81% in exchanges before the opening of Wall Street) for 1.88 billion euros.

The dollar was stabilizing against the euro on Tuesday ahead of US inflation figures and ahead of currency meetings.

The euro was stable at US$1.0536, still stuck below the US$1.06 threshold.

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