Markets are still monitoring the health situation in China, but should open slightly higher. The Eurostoxx 50 opens at 3,909.28 points (-0.40%), the CAC 40 at 6,634.45 points (-0.15%), the DAX 40 at 14,379.93 points (-0.36%), the FTSE 100 at 7,376.85 points (-0.12%), the SMI at 11,085.04 points (+0.36%), the AEX at 10.38 points (-0.30%), the SMI at 11,085.04 points (+0.36%), the AEX at 10.38 points (-0.30%)), the BEL 20 at 3,643.88 points (-0.22%), the IBEX 35 at 8,188.40 points (+0.75%), the DJIA at 33,700.28 points (-0.13%), the Nasdaq at 11,024,51 points (-1.09%), the S&P 500 at 3,949.94 points (-0.39%) and the Nikkei 225 at 28,115.74 points (+0.61%).

In terms of exchange rates, the change from the close mentions that in New York, EUR/USD is at 1,0252 (+0.09%), EUR/JPY at 145.46 (-0.09%) and USD/JPY at 141.90 (-0.17%).

According to the evolution of energy prices, the governor of the Banque de France estimated Monday evening that inflation in the eurozone should reach a peak in the first half of 2023 and return to around 2% “at the end of 2024 or the end of 2025” on the macroeconomic front. This Tuesday, the Financial Markets Authority (AMF) is expected to announce its decision on the draft simplified public purchase offer (OPAS) submitted by the State on the electricity producer EDF.

During an interview for the program “C dans l'Air” on France 5, François Villeroy de Galhau said that there was “no question of allowing inflation, which is an economic disease, to set in.” For Eurostat, inflation in the eurozone reached 10.6% in October over one year. The European Central Bank (ECB) expects to continue its rate hikes, depending on the economic situation. This is information from the central banker, who is a member of the ECB's Board of Governors.

While investors are concerned about the announcement of new health restrictions in China and the tightening of monetary policy by major central banks, European equity markets are expected to hesitate to open on Tuesday. In addition, investors are questioning the possibility of the Organization of Petroleum Exporting Countries (OPEC) increasing its crude production.

According to data from the IG Markets broker, around 7:40am, the CAC 40 futures contract gained 11 points, or 0.2%. The FTSE 100 contract advanced 17 points, or 0.2%, and the DAX 40 contract lost 1 point, or 0.01%.

On Monday, Wall Street closed lower, penalized by the health situation in China. The Dow Jones Index (DJIA) fell 0.1%, despite the support provided by the rise in Disney shares. The Nasdaq Composite dropped 1.1%, the expanded S&P 500 index ended down 0.4%. As the holiday season approaches, investors assess a series of worrying events in the United States in addition to China. Supply chains could be disrupted by the threat of a rail strike.

In Asia, stock exchanges are trading in a scattered order today. At the end of the session, the Hang Seng Index fell 1.7% in Hong Kong, but the Shanghai Composite gained 0.2% and the Nikkei Index on the Tokyo Stock Exchange ended up 0.6%.

As investors assessed the risks of further lockdowns in China and the risks of the Federal Reserve continuing to aggressively tighten monetary policy, US Treasury bond yields rose on Monday. The minutes of the November Fed meeting could shock the market on Wednesday, especially if central bankers are unconvinced by the theory of a spike in inflation, according to Corpay's warnings.

Due to the return of a slight appetite for risk in the markets, the dollar lost ground on Tuesday, including against the euro. MUFG Bank believes that the risk of a downside in currencies other than the greenback remains as investors are concerned about the global economic outlook following the announcement of new lockdown measures in China.

Oanda for his part pointed out that “China's fight against Covid is leading to a major refuge movement towards the dollar.” It was after China announced three Covid-19 deaths over the weekend, the first to be recognized in nearly six months.

Following the release of press reports about a possible reduction in Russian oil production, crude oil futures rose slightly today. Russia would not supply crude oil or refined products to countries that would respect the price cap decided by the G7, according to the statement of the Russian Vice Government, Alexander Novak. According to ING, Russian oil will be redirected to nations that choose to ignore the price cap or production will be reduced. The January contract on light sweet crude (WTI) traded on Nymex lost 10 cents to $79.94 per barrel while the North Sea Brent contract of the same maturity gained 1 cent to $87.46 per barrel around 7:30am.