by Laetitia Volga
PARIS (Reuters) – Eurozone stock markets stabilized mid-session on Monday in volumes reduced by the closure of British and U.S. markets, as optimism sparked by an agreement in principle in the United States on the ceiling public debt falls.
In Paris, the CAC 40, which gained up to 0.5% during the session, lost 0.11% to 7,311.37 at 11:13 GMT. Trade on the CAC 40 represents less than 15% of its daily average over the past month. In Frankfurt, the Dax lost 0.1%.
The euro zone’s EuroStoxx 50 fell by 0.24% and the Stoxx 600 by 0.05%.
In Madrid, the Ibex index drops 0.15%. Socialist Prime Minister Pedro Sanchez announced the surprise call of early legislative elections on July 23, the day after the setback suffered by the left in regional elections.
The day is a public holiday in the United Kingdom for the “Spring Bank Holiday” and in the United States for the “Memorial Day”.
New York index futures are shown up 0.15% to 0.4% after US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy reached a tentative deal Saturday to raise the federal government’s debt ceiling.
But that deal still needs to be approved by both houses of a divided Congress and “there is always a risk, however slim, that hardline Republicans will undo Kevin McCarthy’s efforts,” SPI said. Asset Management.
Beyond the political negotiations in Washington, concerns about inflation and monetary tightening will continue to animate the markets in the days to come.
Data on Friday showed a bigger-than-expected increase in US household consumption and an acceleration in PCE inflation, which could lead the Federal Reserve to keep rates high for some time.
“We are back to a situation where the Fed has to push harder to bring down inflation, which is obviously going to create some form of anxiety in the market. pressure on valuations,” said Samy Chaar, chief economist at Lombard Odier.
CHANGES
The euro fell very slightly against the dollar, hovering around 1.0716. The greenback is virtually unchanged against a basket of benchmark currencies but remains close to the two-month high hit on Friday on expectations of a Fed rate hike next month.
Money markets now estimate a 66% chance of the central bank raising rates by a quarter point in June, up from around 26% a week ago.
In Turkey, the pound hit a new low of 20.08 to the dollar, after Recep Tayyip Erdogan won the presidential election on Sunday, extending his 20-year reign at the helm of a politically polarized country. increasingly authoritarian.
RATE
On the bond market, government bond yields fell sharply: that of the ten-year German Bund, at 2.443%, lost nearly ten basis points.
OIL
Like European equities, the oil market is now on a slight downward trend: Brent fell 0.31% to 76.71 dollars a barrel and American light crude (West Texas Intermediate, WTI) 0.21% to 72 $.52.
NO MAJOR ECONOMIC INDICATOR ON TODAY’S AGENDA
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