Market: Slight decline in sight for equities
- Advertisement -

PARIS (Reuters) – The main European stock markets are expected to be moderately lower at the opening on Monday on dashed hopes that China will ease its policy against COVID-19.

The first indications available indicate a drop of 0.1% for the Parisian CAC 40, 0.1% for the Dax in Frankfurt, 0.6% for the FTSE in London and 0.05% for the EuroStoxx 50.

- Advertisement -

Stock indices rose more than 2% on Friday on hopes of an easing of COVID-19 measures in China, but the country’s health officials on Saturday reaffirmed their commitment to a “zero COVID-19″ strategy. dynamic”.

The economic impact of China’s policy against the SARS-CoV-2 coronavirus was again highlighted in trade figures, which showed an unexpected drop in exports and imports in October, of 0.3% and 0, 7% respectively over one year.

Caution should mark the exchanges on the eve of the midterm elections in the United States, which will determine who from the Republican or Democratic camp will have control of Congress.

The coming week will also be important from a macro-economic point of view with the publication of monthly consumer price figures in the United States.

AT WALL STREET

The New York Stock Exchange ended higher on Friday after the publication of the US employment report and statements by Federal Reserve officials in favor of a slowdown in monetary tightening in December.

The Dow Jones index gained 1.26% to 32,403.22 points, the S&P-500 gained 1.36% to 3,770.55 points and the Nasdaq Composite rose 1.28% to 10,475.25 points.

The U.S. economy added more jobs than expected in September as the unemployment rate rose to 3.7% and average hourly wage growth slowed slightly year on year to 4.7% but accelerated to month-on-month, 0.3%.

“It was, overall, a pretty mixed report,” said Carol Kong, at Commonwealth Bank of Australia. “Judging from the market reaction, investors have been really focused on the rising unemployment rate, which may have led market participants to lower their expectations for the fed funds rate.”

Futures so far point to a decline at the open of between 0.08% and 0.23%.

IN ASIA

The Nikkei on the Tokyo Stock Exchange ended up 1.21% in the wake of Wall Street.

In China, the CSI 300 index of large caps advanced by 0.12% and the SSE Composite of Shanghai by 0.14%

EXCHANGES/RATES

The dollar gained 0.11% against a basket of benchmark currencies and the euro fell slightly, to $0.994,

On the bond market, the yield on ten-year US Treasury bills is unchanged at 4.1566%.

OIL

Oil prices are falling due to demand concerns in China.

Brent lost 0.91% to 97.67 dollars a barrel and US light crude (West Texas Intermediate, WTI) lost 1.16% to 91.54 dollars.

(Laetitia Volga, edited by)

Copyright © 2022 Thomson Reuters