PARIS (Reuters) – The main European stock markets are expected to fall on Monday in the wake of Wall Street and Asian markets, profit taking and a certain caution should prevail for the moment after the solid progression of last week.
The first indications available suggest a decline of 0.54% for the Paris CAC 40, 0.63% for the Dax in Frankfurt, 0.44% for the FTSE in London and 0.63% for the EuroStoxx 50 .
The broad European Stoxx 600 index and the Parisian market, which posted their best weekly performance in two months last week, should give in to profit taking.
The main event of the week will be the semi-annual hearing in Congress of the Chairman of the Federal Reserve on Wednesday. Citi strategists expect Jerome Powell to take the opportunity to hammer home the “hawkish” message launched last week, despite the status quo decided by the central bank.
The market is pricing more than 73% the chance that the Fed will raise the fed funds rate target by a quarter point in July, before pausing until the end of the year, according to the FedWatch barometer. .
The Bank of England holds its monetary policy meeting on Thursday and a quarter point rate hike is widely expected.
AT WALL STREET
Friday, before the long weekend of “Juneteenth”, the New York Stock Exchange ended in the red, weighed down in particular by Microsoft while two Fed officials cooled investors who had started betting on a quick end to the increases rate.
Fed Governor Christopher Waller warned that “underlying inflation is not falling as (he) thought” and Richmond Fed Chairman Thomas Barkin said he was “comfortable with the idea of ​​further rate hikes given that inflation is not yet on a clear trajectory back to 2%.
The Dow Jones index fell 0.32%, or 108.94 points, to 34,299.12 points, the S&P-500 lost 16.25 points, or 0.37%, to 4,409.59 points and the Nasdaq Composite fell 93.25 points (-0.68%) to 13,689.57 points.
Microsoft’s decline (-1.65%) after its all-time high on Thursday weighed on the S&P-500 and the Nasdaq in particular, which did not prevent the two indices from signing a fifth and eighth consecutive week of increases respectively. .
IN ASIA
In Tokyo, the Nikkei dropped 1.26%, after hitting a 33-year peak on Friday in reaction to the Bank of Japan’s maintenance of its ultra-accommodative policy.
Chinese equities also fell as the lack of announcement on possible stimulus measures following a meeting of the State Council disappointed investors.
The CSI 300 index lost 1.03% and the Shanghai SSE Composite 0.65%.
The rare visit of the head of American diplomacy to China also captures attention. Antony Blinken could meet President Xi Jinping during the day, after having agreed the day before with the Chinese Minister of Foreign Affairs to stabilize relations between the two largest economic powers in the world in order to avoid any conflict.
CHANGES
On the foreign exchange market, the “dollar index”, which measures the variations of the greenback against a basket of international currencies, nibbles 0.06%. The euro is stable at 1.0937 dollars.
OIL
Crude prices fall as uncertainties over the future of the Chinese economy outweigh the OPEC+ supply cut and a further drop in the number of operating oil and gas platforms in the United States. United.
Brent fell 1.23% to 75.67 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.37% to 70.8 dollars.
(edited by Tangi Salaün)
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