by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to rise on Monday and European stocks are also in the green mid-session, the lull having returned to the markets after last week’s turbulence around banks, in particular Deutsche Bank. Futures on New York indices signal an opening on Wall Street up 0.67% for the Dow Jones, 0.71% for the Standard & Poor’s 500 and 0.43% for the Nasdaq. In Paris, the CAC 40 advanced by 1.04% to 7,088.06 points around 12:00 GMT. In Frankfurt, the Dax took 1.23% and in London, the FTSE rose 0.93%.
The pan-European FTSEurofirst 300 index gained 1.21%, the Eurozone EuroStoxx 50 0.92% and the Stoxx 600 1.15%.
The banking sector, shaken on Friday by attacks on the title Deutsche Bank whose “credit default swap” (CDS), the cost of insurance against a risk of default, reached a high since the end of 2018, seems to have recovered a little calm on Monday.
This renewed optimism is driven by statements deemed reassuring by the authorities in Europe and the United States on the financial sector, bargain purchases of banking stocks and the announcement of the buyback of all of the deposits and loans of Silicon Valley Bank by First Citizens BancShares.
“Many investors still don’t want to touch the banking sector for fear of further stress,” notes Russ Mould, chief investment officer at AJ Bell.
“However, in a bleak situation, there is always someone who sees an opportunity to make money, which is why we are seeing a rise in the share price of many banks today. Europeans,” he added.
The market is nevertheless still volatile, the VIX index in the United States being at 21.44 points and its European equivalent at 23.38 points while Philip Jefferson, one of the governors of the American Federal Reserve, must speak during the day. Michael Barr, vice-president of the Fed, must for his part be heard by the American Senate on banking supervision on Tuesday. WALL STREET VALUES TO FOLLOW
First Citizens shares jumped 24.9% ahead of trading on Monday after a deal with Silicon Valley Bank.
VALUES IN EUROPE
The European banking compartment, which lost 3.78% on Friday and recorded a third week of decline, resumed 1.4% on Monday with Deutsche Bank (+ 5.02%), UBS (+ 0.96%) or BNP Paribas (+2.32%).
In health (+1.87%), Novartis jumped 6.85% after promising results from a treatment against breast cancer.
Orange takes 2.88% thanks to the raising of Morgan Stanley’s recommendation to “overweight”, while Renault (+3.49%) benefits from HSBC’s advice to “buy”.
At the bottom of the SBF 120, Orpea fell 9.41% after the announcement of an accelerated safeguard procedure as part of a restructuring plan which should result in significant dilution for current shareholders.
Stocks exposed to China such as Pernod Ricard (-1.4%) or the mining group Rio Tinto (-0.57%) are also in the red after the publication of data showing that the fall in profits of industrial groups in China increased over the first two months of the year.
The dollar is roughly stable (-0.12%) against a basket of benchmark currencies as traders digest the latest announcements from the authorities on the banking sector.
The euro is trading at 1.0771 dollar (+0.11%).
The yen, which benefited from its status as a safe haven asset on Friday, rising to 129.65 yen for the dollar, is trading on Monday at 131.46 with the renewed appetite for risk.
Yields on government bonds, which had fallen sharply on Friday, are tending with the easing of fears around the banks.
The yield on two-year Treasuries takes 17 basis points, to 3.95%, and its German equivalent 15.8 points, to 2.53%.
Oil prices are driven by fears of renewed geopolitical tensions in Europe after President Vladimir Putin’s decision to deploy Russian tactical nuclear weapons in Belarus, a move condemned by France and other countries.
Brent gained 1.23% to 75.91 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.3% to 70.16 dollars.
NO MORE MAJOR ECONOMIC INDICATOR ON TODAY’S AGENDA
THE MARKET SITUATION:
(Some data may show a slight shift)
Indices Last Var. Var. %
Dow Jones 32669.0 +235.00 +0.72%
S&P-500 4028.50 +27.25 +0.68%
Nasdaq-100 12942.0 +51.75 +0.40%
“The Day Ahead” – The point on the next
session on wall street [DAY/US]
Closing Indices Var. Var. %YTD
Dow Jones 32237.5 +132.28 +0.41% -2.74%
S&P-500 3970.99 +22.27 +0.56% +3.42%
Nasdaq 11823.9 +36.56 +0.31% +12.97%
Nasdaq 100 12,767.0 +37.82 +0.30% +16.70%
Indices Last Var. Var. %YTD
Eurofirst 300 1,760.90 +19.05 +1.09% +4.91%
Eurostoxx 50 4169.84 +39.22 +0.95% +9.92%
CAC 40 7089.17 +74.07 +1.06% +9.51%
Dax 30 15,147.3 +190.11 +1.27% +8.79%
FTSE 7469.02 +63.57 +0.86% +0.23%
SMI 10774.8 +140.80 +1.32% +0.42%
The values to follow in Paris and in
Standby Price Var.% YTD
Euro/Dlr 1.0772 1.0759 +0.12% +0.66%
DLR/Yen 131.46 130.69 +0.59% +0.27%
Euro/Yen 141.65 140.60 +0.75% +0.96%
Dlr/CHF 0.9165 0.9199 -0.37% -0.85%
Euro/CHF 0.9874 0.9899 -0.25% -0.21%
Stg/Dlr 1.2266 1.2230 +0.29% +1.40%
Index $ 103.042 103.116 -0.07% +7.14%
Last Var. Spread/Bund
Future Bunds 136.670 -1.3300
10-year bunds 2.2340 +0.1090
Bund 2 years 2.5440 +0.1660
10-year OATs 2.7500 +0.0890 +51.60
10-year Treasury 3.4658 +0.0880
Treasury 2 years 3.9466 +0.1700
(in dollars) Preceding Price Var Var. %YTD
US light crude 70.28 69.26 +1.02 +1.47% +14.82%
Brent 76.00 74.99 +1.01 +1.35% +15.10%
(Written by Claude Chendjou, edited by Blandine Hénault)
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I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.