US, WASHINGTON (ORDO NEWS) — Wall Street is expected to open out of order on Tuesday in the aftermath of a spectacular rebound as European stock markets hesitate over the direction to follow, the burst of optimism sparked by the agreement found in the US Senate on a plan massive support for the already sinking economy.
Futures on the main American indices signal a Wall Street opening up 0.2% for the Dow Jones but down 0.8% for the Nasdaq and the S & P-500.
After opening up sharply and then briefly passing through the red, the CAC 40 gained 1.47% at 4,305.11 around 12:15 GMT. In Frankfurt, the Dax , it remains down and yields 0.94%. Footsie in London takes 1.3%.
The pan-European FTSEurofirst 300 index is up 0.96%, the EuroStoxx 50 in the euro zone by 0.29% and the Stoxx 600 by 1.06%.
The Trump administration and US senators reached a compromise on Wednesday on a vast plan to support the US economy of 2,000 billion dollars (1.842 billion euros) to be voted in the Upper House of Congress today before his visit to the House of Representatives.
The prospect of the signing of this agreement had allowed Wall Street to soar Tuesday evening with in particular a Dow Jones index recording its strongest growth in one session since 1933.
Asian markets also benefited from this upturn in global stocks: the Chinese mainland stock markets gained more than 2% and the Nikkei in Tokyo more than 8%, its highest daily rise since 2008.
But as very often in recent weeks, the rebound attempt seems to be running out of steam.
“The investment environment remains unclear and it is still unclear whether the current movement will turn into a real recovery or a simple bullish correction in a bear market,” said Pierre Veyret, analyst at ActivTrades.
“Most European benchmarks are now moving closer and closer to major resistance levels and, in the absence of significant progress in the fight against the deadly virus, we can expect a brutal reaction when prices reach these areas. ”
In this context, the Ifo business climate index in Germany deteriorated even more sharply than expected in March, falling to its lowest level in almost 11 years.
VALUES IN EUROPE
Several sectors went into the red in mid-session, starting with that of chemicals which lost 1.82%. In Frankfurt, the BASF share (DE: BASFN ) (-4.6%) shows the biggest drop in Dax ahead of Lufthansa (DE: LHAG ) (-3.37%).
Despite the decline of the German company, the Stoxx index of air travel and leisure (+ 1.62%), very regularly massacred on the stock market, continues to rise and displays the second strongest growth, last the oil and gas sector (3.23%).
In Paris, Societe Generale (PA: SOGN ) (+ 9.96%) leads the CAC ahead of Safran (PA: SAF ) and Total (PA: TOTF ).
Altice (AS: ATCA ) Media climbed 9.08% the day after results exceeded expectations.
Ipsen (PA: IPN ) fell for its 6.02% after announcing the suspension of its annual targets.
After a brief downturn, yields on government bonds in the euro area started to rise again, but far from their daily highs. That of the German Bund at ten years is displayed at -0.295% while it had risen in session to -0.275%. Its French equivalent barely takes a base point at 0.194%.
On the American market, the yield on 10-year Treasuries takes three basis points to 0.8497%.
The prospect of the American stimulus package, synonymous with a widening budget deficit, favors the decline in the dollar that began in the last two sessions after the spectacular rise last week.
The index measuring the evolution of the greenback against a basket of reference currencies drops 0.58% and the euro moves slightly above 1.08 dollar.
Oil prices started to fall again, the sharp drop in demand due to the spread of the coronavirus taking precedence over the important American economic recovery plan.
The Brent yields 2.95% to 26.35 dollars a barrel and US crude was down 1.33% to 23.69 dollars.
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