PARIS (Reuters) – The main European stock markets are moving up slightly on Monday in the first trade with the decline in bond yields, while on Wall Street the trend is indicated much more cautious pending testimony from Jerome Powell, the president. of the American Federal Reserve (Fed), in front of Congress and the publication of new macroeconomic data.
In Paris, the CAC 40 took 0.49% to 7,384.42 points around 08:30 GMT. In London, the FTSE 100 climbed only 0.05%, penalized by mining stocks. In Frankfurt, the Dax grants itself 0.25%.
The EuroStoxx 50 index rose 0.46%, the FTSEurofirst 300 0.16% and the Stoxx 600 0.22% as the ten-year German Bund yield fell almost four basis points to 2 on Monday, 68%. It posted its biggest weekly gain since Dec. 23 last week, gaining nearly 19 basis points.
Futures contracts on the main American indices foreshadow for the moment a virtual stagnation on Wall Street while Jerome Powell must speak from Tuesday before the House of Representatives and the Senate on the monetary policy of the central bank. Monetary policy meetings of banks in Japan, Canada and Australia are also scheduled for the week.
Risk appetite is also limited by the expectation of the publication on Friday of the US employment report for the month of February and a possible revision of the January statistics which had been clearly higher than expected, making fear a prolonged monetary tightening.
In Europe, the main statistic of the day relates to retail sales in the euro zone which should provide at 10:00 GMT new elements on the evolution of the economy.
China, for its part, at the opening of the plenary session of Parliament, set Sunday a modest objective of economic growth of around 5% this year, a figure lower than the 6% expected by the market.
On the stock market, the European basic resources compartment shows the largest drop in the Stoxx 600, in the wake of the drop in metal prices, following forecasts from China.
In individual values, Telecom Italia (TIM) jumped 3.82%, the board of directors of the Italian Caisse des dépôts (CDP) having approved on Sunday a non-binding offer to buy out the fixed network of the telecom operator valid until to March 31.
(Written by Claude Chendjou, edited by Blandine Hénault)
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