PARIS (Reuters) – European stock markets ended higher on Monday, supported by new support measures announced in China and before the publication of many key indicators this week. In Paris, the CAC 40 gained 1.32% to 7,324.71 points, while the German Dax rose by 1.03%. The British Footsie was closed for the day. The EuroStoxx 50 index ended the session with an increase of 1.29%, against 0.85% for the FTSEurofirst 300 and 0.86% for the Stoxx 600. Beijing announced a halving of stamp duty on the trading in Chinese equities, a measure intended to support weak domestic markets under pressure from a slowing economy. The authorization of 37 new investment funds by the Chinese regulator also aims to revive interest in local equities, while the Chinese Shanghai Composite index has posted a zero performance since the beginning of the year. The European markets have nevertheless progressed after the announcements, far from being sufficient to revive a stopped activity. Investors are also positioning themselves ahead of the publication of several key indicators this week, including inflation in the euro zone and in the United States, the monthly report on employment from the American Department of Labor, and Chinese PMIs. “The data will be at the center of concerns before the September meetings of central banks, the Jackson Hole conference had little impact on the markets”, notes Klaus Baader, economist at Societe Generale CIB. “This week, Eurozone inflation, China’s August PMIs and the US August employment report may have a bigger influence on market expectations ( than the Jackson Hole conference)”. VALNEVA on Monday reported positive early Phase 3 safety data in adolescents for its single-dose chikungunya vaccine candidate, VLA1553, pushing the stock up 2.44%. A WALL STREET US markets are progressing in a calm environment, investors are positioning themselves before the publication of inflation and the report on the labor markets, determining for the next decision of the Federal Reserve, on September 20th. At the time of closing in Europe, trading on the New York Stock Exchange indicated an increase of 0.51% for the Dow Jones, against 0.30% for the Standard & Poor’s 500 and 0.56% for the Nasdaq. Composite. RATES Fixed income markets remained calm, with European short yields sensitive to monetary policy expectations rising moderately after restrictive comments from European Central Bank Governors Robert Holzmann and Martins Kazaks. The ten-year German yield rose 1.1bp to 2.568%, while that of the two-year rate rose 2.4bp to 3.056%. At closing time in Europe, the yield on the 10-year Treasury bond fell 2.3 bp to 4.2157%, while the two-year rate climbed 1.4 bp to 5.0696%. FOREX Currency markets remain calm ahead of the release of many key monetary policy indicators this week. The dollar is stable against a basket of benchmark currencies, and the euro remains at 1.0806 dollars. The pound sterling is treading water at 1.2588 dollars. OIL Crude is hesitating, buoyed by measures in China which raise hopes of broader state support for its economy. Brent was stable at $84.5 a barrel, with US light crude (West Texas Intermediate, WTI) rising 0.34% to $80.1.

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(Writing by Corentin Chapron, editing by Zhifan Liu)

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