by Claude Chendjou

PARIS (Reuters) – The main European stock markets are expected to rise on Monday in the wake of Asian markets after the announcements from China, but the exchanges could be marked by a certain caution while important economic indicators are expected from the start. middle of the week.

According to the first indications available, the Parisian CAC 40 should gain 0.9% at the opening and the Dax in Frankfurt 0.73%. The EuroStoxx 50 index is expected to rise by 0.92%.

Chinese authorities on Sunday announced a 50% drop in stamp duty on domestic stock market transactions and an easing of rules on residential real estate loans.

US Commerce Secretary Gina Raimondo also arrived in Beijing on Sunday to strengthen trade ties between the world’s two largest economies.

These announcements come as the profits of Chinese companies in the industry fell 6.7% year on year in July, the seventh month of decline. China’s official PMI activity indices for August will be released on Thursday, while those for Europe and the United States are due out on Friday. Before that, the market will have seen the monthly inflation figures for Germany on Wednesday and inflation data for the entire bloc on Thursday.

In the United States, the second estimate of the country’s GDP for the second quarter is expected on Thursday and on Friday the report from the Labor Department on job creation, the unemployment rate and wages for the month of August.

These data could provide investors with elements that can confirm or attenuate the significance of the latest statements by central bankers on the state of the economy at the opening of the annual Jackson Hole symposium, where Jerome Powell, President of the Fed, notably underlined the need to keep interest rates high for some time to return to inflation of around 2%.

AT WALL STREET

The New York Stock Exchange ended a volatile session higher on Friday after Jerome Powell’s comments on inflation in the United States.

The Dow Jones Industrial Average gained 0.73%, or 247.48 points, to 34,346.9 points.

The broader S&P-500 gained 29.40 points, or 0.67%, to 4,405.71 points.

The Nasdaq Composite advanced for its part by 126.67 points (0.94%) to 13,590.65 points.

Jerome Powell “shows that he is happy with the progress of monetary policy and the reduction in inflation. But he still clings to the idea that they are monitoring the situation carefully and that they still have work to do. do,” said Michael Arone, chief strategist at State Street Global Advisors in Boston.

Although most investors expect the US central bank to leave rates unchanged at its September meeting, they fear it will raise them in November.

In values, Gap rose after reporting a second-quarter profit that beat expectations.

Nordstrom backed off after leaving its outlook unchanged.

IN ASIA

At the Tokyo Stock Exchange, the Nikkei index ended with a gain of 1.73% to 32,169.99 points and the Topix, broader, took 1.47% to 2,299.81 points.

The MSCI index grouping stocks from Asia and the Pacific (excluding Japan) rose by 1.0%

In China, the Shanghai SSE Composite gained 1.47% and the CSI 300 gained 1.48%.

VALUES TO FOLLOW IN EUROPE:

EXCHANGES/RATES

The dollar, supported by the prospect of a further rise in interest rates in the United States, catches its breath (-0.17%) after hitting a 12-week peak against a basket of benchmark currencies .

The euro is trading at 1.0817 dollars (+0.16%).

Yields on ten-year and two-year U.S. Treasuries are broadly stable at 4.2236% and 5.0761%, respectively, with the latter rising to their highest level since early July at 5.104% on Friday.

In the eurozone, yields on the German Bund for these two maturities stand at 2.557% and 3.046% respectively, virtually unchanged from Friday.

OIL

The oil market is held back by investor concerns about the pace of economic growth in China and the prospect of further interest rate hikes in the United States.

Brent climbed 0.17% to 84.62 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.28% to 80.05 dollars.

(Written by Claude Chendjou, edited by Kate Entringer)

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