by CORENTIN CHAPPRON

PARIS (Reuters) – Wall Street is expected to be hesitant at the open on Monday, while European stocks traded little changed at midday, with investors starting the second half on a cautious note after ending the first on optimism thanks to reassuring data on US inflation.

Futures on New York indices suggest an opening down 0.13% for the Dow Jones, virtually unchanged for the Standard & Poor’s 500 and up 0.08% for the Nasdaq.

Initiatives could remain limited in the US market as Tuesday will be a holiday for US Independence Day.

In Paris, the CAC 40 gained 0.17% at 11:30 GMT, while the FTSE in London gained 0.34%. The Dax, in Frankfurt, fell for its part by 0.09%.

The pan-European FTSEurofirst 300 index gained 0.2%, against 0.13% for the Stoxx 600. The EuroStoxx 50 rose 0.28%.

Global markets were relieved on Friday by US inflation, which did not surprise on the upside, suggesting that the Federal Reserve’s monetary policy is starting to weigh on price dynamics without limiting growth for the moment.

The resistance of the labor markets raises questions, however, and makes some investors fear that the Fed may have to raise its rates more sharply than expected.

In Europe, inflation surprised on the upside in Germany and Spain last week, while European PMI indicators released on Monday morning highlighted weakening manufacturing activity, under pressure from demand for recoil.

“Anyway, we can clearly see that disinflation is likely to remain quite slow (in the euro zone), especially since the labor market, as in the United States, remains very solid, maintaining wage pressures” , write the LBPAM strategists.

THE VALUES TO FOLLOW IN WALL STREET

Tesla on Sunday announced record deliveries in the second quarter, beyond the Wall Street consensus, and gained 6.3% ahead of the stock market.

According to the Financial Times, Apple has been forced to drastically cut production plans for its Vision Pro augmented reality headset due to the complexity of its design.

VALUES IN EUROPE

Casino fell nearly 10% after indicating Monday that it would request “grace periods” from the commercial court in the coming days to avoid default on its debt during the conciliation period with its creditors. .

CGG climbed to the top of the SBF120, up 4.3%, after the French geophysical services company announced that its subsidiary Sercel has won contracts in the Middle East.

Atos (+1.57%) announced on Monday that it had entered into exclusive negotiations with Schneider Electric (-1.66%) for the sale of EcoAct and all of its subsidiaries, an operation which could enable it to complete its program of non-strategic asset disposals.

The oil and gas sector (+2%) benefited from the announcement of a fall in the supply of Russian and Saudi oil in August. In Paris, TotalEnergies gained 2.6%.

RATE

The ten-year German Bund yield is rising again and gains more than five basis points to 2.445% after a low of 2.363% earlier in the session.

Same trend for the ten-year Treasuries rate which gained more than four basis points, to 3.8604%.

CHANGES

Forex traders continue to reassess US monetary policy after last week’s data.

In this context, the dollar advanced by 0.25% against a basket of reference currencies. Conversely, the euro lost 0.18% to 1.0890 dollars, while the pound sterling fell 0.33% to 1.2661 dollars.

The yen remains close to an eight-month low hit against the dollar on Friday, as investors await an imminent intervention from the Japanese authorities.

OIL

The two main world oil exporters, Russia and Saudi Arabia, announced on Monday a reduction in their supply in August, supporting markets so far worried about the slowdown in developed economies.

Brent rose 0.93% during a volatile session, to 76.10 dollars a barrel and American light crude (West Texas Intermediate, WTI) rose 0.99% to 71.36 dollars.

(Report Corentin Chapron, edited by Blandine Hénault)

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