European stock markets expected to fall after the Sino-American agreement, US inflation in the crosshairs

European stock exchanges are generally expected to open lower on Wednesday as investors wait to hear more about the deal reached in London between American and Chinese trade negotiators in London.

The European Commission announced on Tuesday that it was unconditionally authorizing the proposed acquisition of the American satellite operator Intelsat by its competitor SES.

Argan for its part announced the relocation of its logistics site “Aut0nom” located in Serris, Ile-de-France, to the company ZyCom, specialized in the distribution of network and telecom equipment. Financial terms of the transaction were not disclosed.

GTT is meeting its shareholders for a combined general meeting on Wednesday.

At around 7:40 a.m., the CAC 40 futures contract was stable, according to data from broker IG.

European equity markets are expected to fall back at the open on Wednesday as traders review the latest announcements about Sino-American trade relationships and await statistics on inflation in the United States in May.

At around 7:40am, the DAX 40 futures contract in Frankfurt lost 0.3%, while the FTSE 100 in London gave up 0.1%, according to data from broker IG.

American and Chinese negotiators concluded two days of intense discussions in London by announcing on the night of Tuesday to Wednesday that they had found a “framework” for maintaining the trade truce and reducing tensions between the world's two largest economies.

Negotiators did not reveal what exactly was decided in this deal. This “framework” must now be approved by the American president, Donald Trump, and his Chinese counterpart, Xi Jinping

During negotiations in Geneva last month, Washington and Beijing agreed to suspend most of their reciprocal customs surcharges for 90 days in order to allow for in-depth trade discussions. The agreement was based in particular on Beijing's promise to accelerate exports of rare earths and other critical elements while negotiations continued.

In addition, a federal appeals court granted the Trump administration's request that its widespread customs surtaxes be maintained for the time being, but ruled that the case should be expedited this summer. This decision concerns the 10% customs surcharge applied to almost all countries, and also the specific customs duties imposed on China, Mexico and Canada

The New York Stock Exchange closed higher on Tuesday, as investors hoped for progress in trade negotiations between the United States and China.

The Dow Jones Industrial Average rose 0.3% to 42,866.87 points and the S&P 500 rose 0.6% to 6,038.81 points. The Nasdaq Composite, rich in technology stocks, ended up 0.6% to 19,714.99 points

Among the stars of the rating, Tesla gained 5.7% while Donald Trump said Monday evening that he would see “no problem” in renewing the dialogue with Elon Musk, the CEO of the electric car manufacturer. Apple shares (+0.6%) stabilized after losing ground on Monday, on the first day of its annual developer conference

In Asia, the Nikkei index on the Tokyo Stock Exchange rose 0.5% on Wednesday at the end of trading. The Shanghai Composite Index rose by 0.6%, while the Hang Seng on the Hong Kong Stock Exchange rose

At around 7:40am, the 10-year US Treasury bond rate was stable at 4.48%. The two-year bond yield was also unchanged at 4.03%

A highly anticipated auction of 10-year US Treasuries could wake up a sluggish bond market on Wednesday. The 10-year rate has moved within a narrow range of 4.316% to 4.517% since the beginning of June. Yields went on a rollercoaster ride in April and May, due to the news about tariffs.

Investor demand at recent auctions has been a cause for concern, as foreign investors fund a large portion of American debt. Observers fear that U.S. trade policies may frighten them. Last month, an auction of 20-year Treasury securities highlighted investor concerns, with yields rising after the mixed reception of the deal