European markets should continue to decline, still worried about tensions over Ukraine. The Eurostoxx 50 opens at 4,064.45 points (-2.18%), the CAC 40 at 6,852.20 points (-2.27%), the DAX 40 at 15,113.97 points (-2.02% ), the FTSE 100 at 7,531.59 points (-1.69%), the SMI at 12,026.37 points (-1.68%), the AEX at 747.89 points (-1.79%), the BEL 20 at 4,004.89 points (-1.85%), the IBEX 35 at 8,573.80 points (-2.55%), the DJIA at 34,566.17 points (-0.49%), the Nasdaq at 13,790 .92 points (0.00%), the S&P 500 at 4,401.67 points (-0.38%) and the Nikkei 225 at 26,865.19 points (-0.79%).
Regarding the exchange rate, the variation compared to the close in New York indicates that the EUR/USD opens at 1.1319 (+0.11%), the EUR/JPY at 130.53 (-0.08%) and USD/JPY at 115.33 (-0.18%).
Engie, M6, Bic and Coface publish their annual results on Tuesday, while Neon presents its turnover for the 2021 financial year.
European equity markets are expected to continue their decline at the open on Tuesday as investors remain concerned about tensions over Ukraine. At 7:40 a.m., the CAC 40 futures contract lost 12 points, or 0.2%, according to data from broker IG Markets. The DAX 40 contract was down 41 points, or 0.3%, and the FTSE 100 contract was down 14 points, or 0.2%.
Corporate earnings are under particular scrutiny in this environment as the market seeks to better understand how they are managing high inflation. Among the main publications expected this week include those of Walmart, Nestlé and Airbnb. In search of indications on inflation, investors will also watch Tuesday the producer price index in the United States for January.
In the euro zone, the second estimate of the gross domestic product (GDP) for the fourth quarter, the trade balance for December and the leading indicator ZEW in Germany are due at 11:00 am. The President of the European Central Bank (ECB), Christine Lagarde, repeated Monday, during a speech before the European Parliament, that inflation in the euro zone should remain high in the short term but ease in the course of the year. year 2022. During its next meeting in March, the Governing Council will have the updated economic forecasts of the ECB teams and "examine how energy prices will feed through to the economy and affect the whole prospects", added Christine Lagarde.
In Asia, most stock indexes remain on the downside on Tuesday. At the end of the session, the Hang Seng index of the Hong Kong Stock Exchange lost 1.3%. The Nikkei fell 0.8% in Tokyo, after a warning from the Japanese government on the health of the economy in the first quarter of 2022. The Japanese economy grew by 5.4% in the fourth quarter on an annualized basis, supported by household consumption, but the increase in Covid-19 cases at the beginning of 2022 should slow the recovery of the current three months. Compared to the third quarter of 2021, Japan's growth was 1.3%. Private consumption increased by 2.7% in the last three months of 2021 compared to the previous quarter, thanks to the rebound in services activity after the lifting, on September 30, of the restrictions put in place to fight the pandemic in Tokyo and other cities.
Monday evening, Wall Street closed lower, cautious in the face of escalating tensions in Ukraine. The Dow Jones Index (DJIA) lost 0.5% to 34,566.17 points, and the broader S&P 500 index lost 0.4% to 4,401.67 points. The Nasdaq Composite remained close to balance, at 13,790.92 points.
The yield on the 10-year US Treasury bond fell slightly on Tuesday, to 1.979% from 1.988% on Monday night, as investors remained nervous over the possibility of an invasion of Ukraine by Russia. The market also continues to assess the pace and magnitude of upcoming Federal Reserve (Fed) interest rate hikes as the central bank attempts to contain inflation at its nearly 40-year high.
The euro rose against the dollar on Tuesday morning. The U.S. bank estimates the Fed will raise interest rates by 25 basis points next month, even if the market expects a 50 basis point hike instead, and adds that statements from bank officials will have to be watched American power station in the coming days. Meanwhile, Danske Bank thinks the euro is likely to fall to $1.08 over the next 12 months, from 1.1317 on Tuesday morning, as the Fed will raise interest rates more than the ECB.
Oil prices fell on Tuesday morning, due to a possible technical correction after reaching their highest levels since 2014 the day before. Several analysts, however, believe that the reduced supply on the oil market and the geopolitical tensions around Ukraine encourage operators to aim for a rise in crude prices above 100 dollars a barrel. Demand continues to improve while global inventories remain at depressed levels. Around 7:30 a.m., the April contract on Brent North Sea oil lost 53 cents to $95.92 a barrel. The Nymex-listed light sweet crude (WTI) March contract was down 60 cents at $94.86 a barrel.