PARIS (Reuters) – European stock markets ended hesitantly on Monday, with investors digesting numerous data and comments from monetary policy makers.
In Paris, the CAC 40 gained 0.24% to 7,251.12 points, while the German Dax lost 0.07% and the British Footsie 0.11%. The EuroStoxx 50 index ended the session with an increase of 0.07%, compared to 0.07% for the FTSEurofirst 300 and 0.1% for the Stoxx 600.
A burst of data and comments from members of the Board of Governors of the Federal Reserve published last week have investors hesitant, who are now trying to understand when, and how quickly, the Fed will start lowering rates.
“The ‘Goldilocks’ scenario, which refers to an optimal situation where growth is modest, but very real, and inflation is moderate, dominates financial markets after the publication of inflation figures in the United States. United”, notes Christopher Dembik, investment strategy advisor at Pictet AM.
“In terms of monetary policy, this has two consequences: the terminal rate has certainly been reached and a rate cut is perhaps on the cards.”
The markets also remain cautious ahead of several important events.
The minutes of the last meeting of the American central bank will be published on Tuesday, while Black Friday Friday will give indications on the resistance of the American consumer, the main driver of activity across the Atlantic.
In addition, Nvidia, one of the “magnificent seven” whose performance supported the American stock markets in 2023, will publish its results on Tuesday.
Worldline gained 0.22% during a volatile session, after Goldman Sachs lowered its recommendation on the French payment solutions specialist from “buy” to “neutral”, with the intermediary estimating that ” “company-specific problems” are weighing on its growth prospects.
Bayer fell 17.35%, trailing the Stoxx 600, after announcing on Sunday the abandonment of a large phase III clinical trial involving a new anticoagulant drug, asundexian, due to its lack of effectiveness . The group took the health sector with it (-0.44%).
Julius Baer fell 11.34% after lowering its profit forecasts, with the group forced to increase its provisions linked to non-performing loans.
The energy sector posted the best performance of the index sectors, gaining 1.58%, thanks to the rise in crude prices. TotalEnergies increased by 1.94%, one of the best performances on the CAC 40.
A WALL STREET
Wall Street is moving forward, taking advantage of indicators showing a slowdown in activity and inflation in the United States, published last week.
At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.24% for the Dow Jones, compared to 0.42% for the Standard & Poor’s 500 and 0.74% for the Nasdaq. Composite.
Yields ended moderately higher in a wait-and-see environment. Italian and Portuguese yields, on the other hand, benefited from the decisions of the rating agency Moody’s and fell back.
At the close of the European interest rate markets, the ten-year Treasury yield rose 2.6 bp to 4.4666%, compared to 1 bp for the two-year rate, to 4.9151%.
The yield on the German ten-year rose 2.9 bps to 2.618%, while that of the two-year rate rose 5.5 bps to 3.018%.
The dollar declines to a two-month low as investors believe the Federal Reserve is done with rate hikes.
The dollar lost 0.4% against a basket of reference currencies, while the euro gained 0.31% to 1.0941 dollars. The pound sterling rose 0.27% to $1.2495.
Crude is up sharply, supported by the prospect of a further cut in OPEC production, with three sources telling Reuters the producers group plans to raise the subject at its next meeting.
Brent rose 2.72% to $82.8 per barrel, American light crude (West Texas Intermediate, WTI) rose 2.58% to $77.85.
(Written by Corentin Chappron, edited by Tangi Salaün)
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