by Claude Chendjou
PARIS (Reuters) – European stock markets are trending up slightly on Monday mid-session, while in New York the three main indices are indicated practically stable before the opening in a context of wait-and-see on the markets before the publication this week of US inflation figures and the first quarterly results of the major Wall Street banks.
Futures on New York indices signal an opening on Wall Street up 0.1% for the Dow Jones, 0.03% for the Standard & Poor’s 500, while the Nasdaq could fall 0.03%.
In Paris, the CAC 40 advances by 0.68% to 7,160.53 points around 12:00 GMT. In Frankfurt, the Dax 0.58% and in London, the FTSE 0.39%.
The pan-European FTSEurofirst 300 index rose 0.24%, the euro zone’s EuroStoxx 50 gained 0.65% and the Stoxx 600 0.32%.
Monthly data on consumer prices in the United States will be published on Wednesday and the Reuters consensus forecasts a slowdown in inflation to 3.1% year on year after 4.0% in May.
In the euro zone, the market awaits Tuesday the final figures of German inflation for the month of June before those of the whole bloc next week.
These indicators could influence rate hike expectations as Friday’s report from the US Department of Labor showed a slowing job market on Friday but accelerating wage pressures.
Money markets are pricing in a 25bp rate hike from the Federal Reserve (Fed) this month, but are divided for the rest of the year.
Investors also have an eye on the release of financial accounts from JPMorgan Chase, Citigroup and BlackRock, due Friday, which kick off the unofficial second-quarter earnings season.
WALL STREET VALUES TO FOLLOW
VALUES IN EUROPE
In Europe, the positive trend is led by the oil and gas compartment which rose by 0.97% on the hope of stimulus measures in China after indicators showing a continuation of the fall in producer prices and stagnation consumer prices, signs of weak demand.
In Paris, TotalEnergies, one of the strongest increases in the CAC 40, takes 1.31%.
In Frankfurt, Bayer gains 3.2%, a press article suggesting that the German group could split its subsidiary CropScience.
Scout24 fell 4.32% after UBS moved to “sell” on the stock, citing pressures in the German property market.
EXCHANGES/RATES
The dollar index measuring the fluctuations of the greenback against a basket of reference currencies regained (+0.13%) part of the ground lost on Friday after the publication of the US employment report.
The euro is trading at $1.0954 (-0.12%).
The pound, which touched a 15-month high of 1.2850 on Friday on expectations of a Bank of England rate hike to 6.5% early next year, is showing on Monday at 1.2776 dollars (-0.47%).
On the bond market, the yield on ten-year US Treasury bonds was stable at 4.0397%, while its German equivalent was at 2.640%, up one basis point.
OIL
Oil prices are volatile as investors are torn by weak Chinese indicators and the prospect of lower Russian and Saudi production next month. Black gold also gained more than 4% last week and hit a high since May.
Brent fell 0.25% to 78.27 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.3% to 73.64 dollars.
NO MAJOR ECONOMIC INDICATOR ON THE JULY 10 AGENDA
(Written by Claude Chendjou, edited by Kate Entringer)
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