PARIS (Reuters) – The main European stock markets are trending upwards on Monday in the first trades, the relief born from the good inflation figures in Europe and the United States continuing to fuel optimism before the publication of data on manufacturing activity.
In Paris, the CAC 40 rose 0.74% to 7,187.75 points around 07:25 GMT. In London, the FTSE 100 gained 0.05% and in Frankfurt, the Dax gained 0.51%.
The EuroStoxx 50 index increased by 0.63% and the FTSEurofirst 300 by 0.27%. The Stoxx 600, which ended the entire quarter (-2.5%) with its biggest drop in a year, gained 0.45% for the first session of the fourth quarter.
Futures contracts on Wall Street also forecast an increase of 0.56% for the Dow Jones, 0.65% for the Standard & Poor’s 500 and 0.9% for the Nasdaq after a scattered session on Friday.
The announcement on Friday of a deceleration to 4.3% year-on-year in consumer prices in September in the euro zone, combined with a greater slowdown than expected in core PCE inflation in the United States, offered a breath of fresh air to markets shaken for a large part of the third quarter by fears about the monetary policy of the major central banks.
Luis de Guindos, vice-president of the European Central Bank (ECB), however again rejected the idea of a rate cut on Monday and said that returning to the 2% inflation target would not be easy , according to the Financial Times.
On the bond market, the yield on the ten-year German Bund started to rise slightly again, taking around two basis points, to 2.846, after a decline of almost 13 points on Friday.
Investors are now awaiting the manufacturing PMI index figures for September in Europe which are due to be published from 07:50 GMT, while the ISM manufacturing index in the United States is due at 14:00 GMT. These data should provide indications on the evolution of the economy while a recession remains feared in Europe.
On the pan-European Stoxx 600, the technology compartment (+0.72%) and that of real estate (+0.98%), which benefited at the end of last week from the slowdown in inflation, are still progressing.
Basic resources (+1.26%) are also in demand, as is energy (+0.44%), a “shutdown” considered catastrophic having been avoided in the United States.
Casino takes 2.11% after the official transfer of 61 stores to Intermarché (Groupement les Mousquetaires), an operation intended to reduce the debt of the Saint-Etienne group.
Vivendi advances by 2.98% thanks to the increase in Barclays’ recommendation to “overweight”.
The Spanish bank BBVA gained 0.59% with the start this Monday of its billion-euro share buyback program.
(Writing by Claude Chendjou, edited by Kate Entringer)
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