At the opening, the European stock exchanges should present a mixed picture. The Eurostoxx 50 opens at 3,882.78 points (-0.83%), the CAC 40 at 6,607.22 points (-0.52%), the DAX 40 at 14,234.03 points (-1.00%), the FTSE 100 at 7,351.19 points (-0.25%), the SMI at 10,936.62 points (-0.81%), the AEX at 709.11 points (-1.02%), the BEL 20 at 3,613.08 points (-1.47%), the IBEX 35 at 8,101.40 points (-1.06%), the DJIA at 33,553.83 points (-0.12%), the Nasdaq at 11,183.66 points (-1.54%), the S&P 500 at 3,958.79 points (-0.83%) and the Nikkei 225 at 27.54% 930,57 points (-0.35%).

As for exchange rates, the change compared to the close mentions that in New York, EUR/USD is at 1.0381 (-0.14%), EUR/JPY at 144.69 (-0.26%) and USD/JPY at 139.39 (-0.11%).


While Française des Jeux is organizing an investor day, Bouygues published its results for the first nine months of the 2022 financial year on Wednesday. For its part, the operator of Paris airports, Groupe ADP, presents its traffic figures for the month of October. The construction and dealership group Vinci announced Wednesday evening that traffic in its Vinci Autoroute division had fallen by 7% in October compared to the corresponding period in 2002. And VINCI Airports traffic increased by 57.8% at the same time.

As geopolitical tensions linked to the missile strike that hit Poland subside and while in the United States, the Republicans have regained control of the House of Representatives, the main European equity markets are expected to open in a mixed order today. Investors are now waiting for the presentation of the British government's draft budget for 2023.

Data from the IG Markets broker mentions that the CAC 40 contract gained 16 points, or 0.2% around 7:30am. The FTSE 100 contract gave up 11 points, or 0.2%, while the DAX 40 contract gained 68 points.

The Republicans won the majority of seats in the U.S. House of Representatives. They are thus strengthening their ability to lead the congressional agenda after two years of Democratic control of both houses of Congress.

Investors and the political situation in the country are more concerned about the economic outlook in the United States. Yesterday, Wall Street ended in the red as recession fears persisted. The Nasdaq Composite dropped 1.7%, the expanded S&P 500 index fell 0.9%, and the Dow Jones Index (DJIA) lost 0.1%.

Asian markets are falling today, in the wake of Wall Street. At the end of the session, the Hang Seng Index lost 1.9%, the Nikkei Index on the Tokyo Stock Exchange lost 0.4% and the Shanghai Composite Index fell by 0.6%.

Yesterday, the 10-year US Treasury bond yield fell to its lowest level in a month. This caused the yield gap between two- and ten-year securities, a key indicator of recession risk, to fall to its most negative level in 40 years. Between 2-year and 10-year rates, the gap narrowed to 67 basis points. This level has not been reached since February 18, 1982, when it rose to -70.5 basis points.

Ian Lyngen, head of US interest rate strategy at BMO Capital Markets, said the Fed should raise interest rates by 0.5 percentage points in December and then slow the pace. For the strategist, the Fed will keep rates at this level, “thus risking a more pronounced recession” once the federal funds rate reaches its peak.

This morning, the euro fell against the dollar. Philip Wee, a currency strategist at DBS Group Research, believes that the market is only worried about further Fed rate hikes causing a recession. This reduces the motivation of traders to sell the dollar. According to the same source, recent remarks by American central bankers have put an end to bets on a more accommodating Fed course and reinforced fears of a recession.

While the supply threat posed by the tensions linked to a missile launch in Poland has somewhat subsided, oil contracts continued to decline this morning. In a note, Stephen Innes, partner at SPI Asset Management, said that demand concerns should now come back to the forefront. According to him, Covid-19 cases in China continue to increase and the flu season is approaching.

Stephen Innes added that “operators have few solutions to rebalance their positions, as the possibility of new lockdowns in densely populated areas [of China, editor's note] harming oil demand exponentially compared to other parts of the economy.”

The December contract on light sweet crude (WTI) traded on Nymex fell by $1.06 to $84.53 per barrel, while the January contract on North Sea Brent lost 89 cents to 91.97 dollars per barrel at 7:30am.