PARIS (Reuters) – Wall Street is expected to fall at the open on Monday, while European markets fell only moderately at mid-session despite an uncertain geopolitical situation.

New York index futures suggest a lower opening for Wall Street, with the Dow Jones down 0.06%, while the Standard & Poor’s 500 fell 0.14% and the Nasdaq 0.24%.

In Paris, the CAC 40 advanced by 0.06% at 10:50 GMT, while the FTSE in London lost 0.0.36%. The Dax, in Frankfurt, fell by 0.36%. The pan-European FTSEurofirst 300 index fell 0.24%, against 0.23% for the Stoxx 600.

The EuroStoxx 50 fell by 0.11%.

The Wagner Group mutiny had only a brief impact as markets opened on Monday, with investors remaining focused on monetary policy developments as the annual conference of the European Central Bank (ECB) opens. in Sintra, Portugal.

Economic data last week showed that monetary policy was weighing on the European economy, but the business climate in Germany, released on Monday, deteriorated more than expected in June.

“The events in Russia this weekend have so far had very little impact on global financial markets,” note ING strategists, who refer in particular to a lack of clarity on the sequence of events. .

“Markets are instead focusing on inflation: central bankers and governments are being criticized for keeping monetary and fiscal policy too loose for too long, and this topic will be the focus of the Sintra forum.”

IBM would be close to an agreement for the acquisition of 5 billion dollars of the Apptio group, which offers in particular dematerialized computing services (cloud) and business management software, according to the Wall Street Journal.

Orpea takes the lead in the SBF120, up 31.34%, an auditor’s report having revalued the group to between 6 and 7 billion euros, while the rebound was amplified by takeovers intended to close short positions.

The possible sale of Swedish promoter SBB’s education-related business buoys the group’s stock, up 12.55%, topping the Stoxx 600. Luxury carmaker Aston Martin gains 9.3%, after to have reached an agreement with the American manufacturer of electric vehicles Lucid Group, which takes a stake in the capital of the British group in exchange for its technology of motors and electric vehicles.

Casino lost 9.06%, at the bottom of the SBF120, after announcing on Monday that it needed 900 million euros in equity to be able to reach an agreement in principle on the restructuring of its debt by the end of July .

The values ​​of the defense sector fell in mid-session, after the brief mutiny of Wagner: Thalès lost 1.71%, against 2.08% for Dassault Aviation and 3.87% for Rheinmetall.

RATE

European rates are continuing their decline that began at the end of last week, with poor economic data confirmed by the German business climate encouraging investors to favor long rates.

The ten-year German yield lost 6.1 bp, to 2.2970%, against a drop of 3.6 bp for the two-year rate, which reached 3.1330%.

In the United States, yields also fell, by 5.7 bp for the ten-year Treasury, to 3.6825%, while the two-year rate fell by 5.1 bp, to 4.6987%.

CHANGES

Safe assets did not benefit from geopolitical uncertainty in mid-session: the dollar fell 0.20% against a basket of benchmark currencies, while gold rebounded modestly by 0.56%, remaining close to its lowest level for three months.

The euro strengthened against the dollar, advancing 0.13% to 1.0902 dollars, while the pound sterling stagnated at 1.2707 dollars.

The yuan hit a seven-month low against the dollar, down 0.78 percent to 7.2340 yuan per dollar as the outlook for monetary policy remained uncertain.

OIL

The turmoil in Russia, the world’s third largest producer of crude, supported the markets, which nevertheless consider the implications of the mutiny on the supply of oil to be limited.

During a volatile session, Brent advanced 0.62% to 74.31 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.52% to 69.48 dollars.

(Writing by Corentin Chapron, editing by Kate Entringer)

Copyright © 2023 Thomson Reuters