by Claude Chendjou

PARIS (Reuters) – European stock markets fell mid-term on Monday, in a relatively calm session, in the absence of Wall Street, closed for a public holiday, and major economic indicators on the agenda.

The New York Stock Exchange, which ended Friday in the red, will not reopen until Tuesday due to the long weekend of “Juneteenth”, commemorating the abolition of slavery. In Paris, the CAC 40 lost 0.55% to 7,347.94 points around 11:45 GMT. In Frankfurt, the Dax, which ended Friday at a historic high of 16,427.42 points, lost 0.7%. In London, the FTSE fell 0.5%.

The pan-European FTSEurofirst 300 index fell by 0.59%, the euro zone’s EuroStoxx 50 by 0.39% and the Stoxx 600 by 0.63%.

Following monetary policy meetings last week from the US Federal Reserve (Fed) and European Central Bank (ECB), investors’ attention is still focused on interest rates ahead of Thursday’s expected Bank decisions. of England and especially the two days of testimony of the chairman of the Fed, Jerome Powell, before Congress on Wednesday and Thursday.

Attention is also focused on geopolitics, with US Secretary of State Antony Blinken being in China for two days, where he notably met President Xi Jinping, in a context of tensions between the two countries.

VALUES IN EUROPE

All the major sectors of the European rating, with the exception of banks (+0.36%), are in the red, chemicals showing the largest drop (-2.02%) with in particular Air Liquide (-3, 14%) and BASF (-2.74%), victims of profit taking after the sharp rise on Friday

The luxury sector (-0.63%) and the basic resources sector (-1.46%) lost ground due to their exposure to China as Goldman Sachs lowered its GDP growth forecast on Sunday. China for this year at 5.4% versus 6.0% previously. According to state media, Beijing discussed stimulus measures for its economy on Friday, while China’s Central Bank (PCB) cut short-term interest rates last week to support growth.

In corporate news, Sartorius Stedim Biotech fell 12.55% after it revised down its forecast for this year.

Vinci (-3.98% and Eiffage (-5.15%) suffer from information that there could be new taxes on the operation of motorways.

Orange widens its losses (-1.04%), a source having reported that the European regulator should express reservations about the proposed merger with Masmovil.

Upside, Airbus takes 0.49% in favor of advanced discussions for a large order of Viva Aerobus, according to sources.

RATE

Eurozone bond yields edge higher on Monday, with markets betting on further rises in the cost of credit with the ECB’s terminal deposit rate above 3.9% by September.

The ten-year German Bund yield rose 4.2 basis points to 2.506%.

In the UK, the yield on two-year Gilts crossed the 5% mark for the first time since 2008. Around 11:45 GMT, it gained 5.9 basis points, to 4.991%, while the ten-year gained 3 .5 points, to 4.448%. The financial markets are now counting with a probability of more than 50% on a peak of the main BoE key rate at 6% by February 2024.

CHANGES

The dollar, which fell to a one-month low on Friday, gained 0.21% against a basket of international currencies.

The euro is displayed at 1.0923 dollars (-0.09%), while the pound sterling is trading at 1.28115 dollars (-0.08%).

OIL

The oil market is affected by uncertainties about the evolution of the Chinese economy: Brent lost 0.16% to 76.49 dollars a barrel and American light crude (West Texas Intermediate, WTI) by 0.35% to $71.53.

(Written by Claude Chendjou, edited by Kate Entringer)

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