by Claude Chendjou

PARIS (Reuters) – Wall Street is expected to rise slightly on Monday and European stock markets are also moving cautiously in the green mid-session in a relatively calm market environment where investors are still digesting macroeconomic data on inflation and the economy. last week. Futures on New York indices signal an opening on Wall Street up 0.37% for the Dow Jones, 0.36% for the Standard & Poor’s 500 and 0.26% for the Nasdaq. In Paris, the CAC 40 gained 0.35% to 7,441.12 around 12:00 GMT. In Frankfurt, the Dax advances by 0.15% and in London, the FTSE gains 0.46%.

The pan-European FTSEurofirst 300 index is up 0.34%, the Eurozone EuroStoxx 50 0.17%, the Stoxx 600 0.36%.

Apart from the uncertainties on the ceiling of the American debt, new discussions between Republicans and Democrats being planned for Tuesday, no major element is likely to cause volatility on the markets.

Investors will take notice this week of Germany’s Zew Investor Sentiment Index, final Eurozone inflation figures and US retail sales data, as central banker interventions are expected Friday, including that of Fed Chairman Jerome Powell.

In today’s statistics, industrial production in the euro zone fell more than expected in March, by 4.1% over one month and 1.4% over one year, according to Eurostat.

The European Commission has revised its growth forecast for 2023 upwards to 1.1% and to 1.6% for 2024 against 0.9% and 1.5% previously. The EC inflation forecast, on the other hand, was raised to 5.8% in 2023 and 2.8% in 2024, from 5.6% and 2.5% previously. The European Central Bank (ECB), for its part, indicates in a study that the impact of monetary tightening on inflation will not be fully felt until 2024.

WALL STREET VALUES TO FOLLOW

Elon Musk, the boss of the car manufacturer Tesla, is participating this Monday in the “Choose France” summit in Versailles which should attract around thirty investment projects from groups such as Pfizer and Morgan Stanley.

Oneok fell 5.9% in pre-market after the announcement on Sunday of the acquisition of the oil pipeline operator Magellan Midstream Partners (+7.0% in pre-market) for around 18.8 billion dollars (17, 3 billion euros), debt included.

VALUES IN EUROPE

On the Stoxx 600 virtually all major sectors are in the green, with the best performers being for basic resources (+1%), transport and tourism (+1.01%), as well as the defensive compartments of the real estate (+1.31%), telecoms (+0.69%) and “utilities” (+0.71%).

In corporate news, Axa gained 2.47% after reporting higher-than-expected financial solvency in the first quarter.

Siemens Energy advanced 2.32% after raising its sales outlook for this year.

The Spanish bank BBVA, particularly exposed to Turkey, lost 4.24% the day after the Turkish presidential election marked by uncertainty over the second round which should oppose Recep Tayyip Erdogan to Kemal Kiliçdaroglu.

RATES Government bond yields in Europe and the United States rose in the wake of rising inflation expectations.

That of the ten-year German Bund takes about three basis points, to 2.301%, and its American equivalent 2.6 points, to 3.4887%.

EXCHANGES The dollar resumed its breath on Monday (-0.21%) against a basket of benchmark currencies after hitting a five-week peak at 102.75 points.

The euro took the opportunity to rise to 1.0877 dollars (+0.27%).

The Turkish lira fell to its lowest level in two months, at 19.6 per dollar, after the first round of the Turkish presidential election.

OIL

Oil prices, which posted a fourth consecutive week in the red on Friday, were supported on Monday by signs of supply tensions resulting from the production cuts of OPEC and its allies, which take precedence over concerns about demand from the United States and China.

Brent fell 0.55% to 74.58 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.61% to 70.47 dollars.

(Written by Claude Chendjou, edited by Blandine Hénault)

Copyright © 2023 Thomson Reuters