PARIS (Reuters) – The main European stock markets are expected to rise slightly on Monday with the easing of the selling pressure observed last week while the brief rebellion of the Wagner group against Moscow should keep investors on the alert.

The first indications available indicate a gain of 0.1% for the Parisian CAC 40, 0.24% for the Dax in Frankfurt, 0.1% for the FTSE in London and 0.28% for the EuroStoxx 50.

The mercenaries of the Wagner group led by Yevgeny Prigojine put an end in the night from Saturday to Sunday to their advance towards Moscow, which constituted an unprecedented challenge for Russian President Vladimir Putin in 23 years of power.

The markets will be attentive to the repercussions of this brief and sudden episode, but monetary and economic news should once again take center stage this week.

This Monday opens for three days the annual Forum of the European Central Bank (ECB) in Sintra, Portugal, during which must speak in the coming days several of the main leaders of central banks of the planet.

The issuing institutes of the United Kingdom, Switzerland and Norway opted this week for a further increase in their interest rates in the face of the tenacity of inflation and the Chairman of the Federal Reserve for his part recalled that monetary tightening was probably not complete in the United States despite the pause decided at the last meeting.

AT WALL STREET

The New York Stock Exchange fell on Friday in response to Fed Chairman Jerome Powell’s “hawkish” statements during the week.

The Dow Jones index fell 0.64%, or 218.29 points, to 33,728.42 points, the Standard & Poor’s 500 lost 33.55 points, or 0.77% to 4,348.34 points and the Nasdaq Composite fell 138.09 points (-1.01%) to 13,492.516. The Nasdaq broke its longest eight-week rally streak, the longest since March 2019, while the S&P 500 ended a five-week rally, the longest since November 2021.The S&P 500 and Nasdaq recorded their biggest percentage drop over a week since early March, during the banking crisis.

IN ASIA

Closed late last week for festivities, Chinese markets reopened in the red, with tourism and mobility data over the three public holidays signaling a weak economic recovery.

The CSI 300 index fell by 1.46% and the Shanghai SSE Composite by 1.5%.

In Tokyo, the Nikkei (-0.25%) fell for the third session in a row.

RATES/EXCHANGES

Yields on US government bonds fell slightly in Asian trading, to 3.7251% for the ten-year and 4.7375% for the two-year.

In Europe, the ten-year German was unchanged at 2.36% in early trading.

The dollar lost 0.17% against other major currencies. The euro regained some ground at 1.0901 dollar after suffering on Friday from weak growth in the private sector in the euro zone according to the provisional results of the PMI surveys.

OIL

The oil market is rising a bit as the revolt of Wagner’s Russian mercenaries has raised questions about political stability in Russia and the potential impact on crude supply.

Brent gained 0.51% to 74.23 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.42% to 69.45 dollars.

(Laetitia Volga, edited by Nicolas Delame and Kate Entringer)

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