PARIS (Reuters) – The main European stock markets rebounded on Monday morning but the gains were weak, the context being cautious on the eve of the two-day meeting of the American Federal Reserve (Fed).
In Paris, the CAC 40 took 0.7% to 7,263.28 points around 07:50 GMT. In London, the FTSE 100 advances by 0.22% and in Frankfurt, the Dax gains 0.8%.
The EuroStoxx 50 index rose by 0.69%, the FTSEurofirst 300 by 0.36% and the Stoxx 600 by 0.5%.
Futures contracts on Wall Street predict a slight rise, with a gain of 0.18% for the Dow Jones, 0.34% for the Standard & Poor’s 500 and 0.44% for the Nasdaq.
At the start of a week that will be marked by the monetary policy decisions of three major central banks, the Fed (Wednesday), the European Central Bank (Thursday) and the Bank of Japan (Friday), the context remains despite everything careful.
Especially since the unexpected decisions last week by the central banks of Australia (RBA) and Canada (BoC) to opt for a new tightening of monetary screws have awakened fears of a possible surprise at the end of the two-day Fed meeting.
“It will be a close vote between a 25 basis point hike or a ‘jump’ (for the month of June),” Citi analysts wrote in a note, referring to the Fed’s decision expected on Wednesday. They also point out that this decision will be taken the day after the publication of monthly consumer prices in the United States.
With a federal funds target already at 5.0%-5.25%, a further rise in the cost of credit could push the US economy into recession and challenge the scenario of a soft landing as the latest data on the PMIs showed a contraction in manufacturing activity and a sharp deceleration in services.
Values, Novartis takes 0.96% after the announcement of an agreement to acquire the American group Chinook Therapeutics for an amount of up to 3.5 billion dollars. The health index gains 0.48%.
Adidas jumped 4.81% as Bernstein raised its recommendation on the sportswear maker to “outperform”.
In Paris, luxury is well oriented, with LVMH in particular, which grew by 1.46%.
(Written by Claude Chendjou, edited by Blandine Hénault)
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